Cap Rate Calculator
Calculate cap rate, property value, or required NOI. Built for Central Florida commercial real estate investors.
Cap Rate Calculator
Calculated Cap Rate
Cap rate = NOI ÷ Property Value. Market cap rates in Central Florida vary by asset class — typically 4.5–5.5% for Class A multifamily, 5.5–6.5% for industrial, and 6.5–8.5% for office.
How to Use This Calculator
The cap rate calculator solves any one of three variables given the other two: cap rate, property value, or net operating income. Use the tabs at the top to switch modes:
- Calculate Cap Rate — Input NOI and value, see the resulting cap rate. Use this when evaluating a property at an asking or offer price.
- Calculate Value — Input NOI and a market cap rate, see what the property should sell for. Use this to back into pricing on a deal you're analyzing.
- Calculate NOI — Input target value and cap rate, see required NOI. Use this when underwriting a value-add or stabilization plan.
Central Florida Cap Rates by Asset Class
Use these as starting benchmarks. Always validate against current comparable sales and seek a market opinion from a local broker.
- Multifamily (Class A): 4.25–5.25%
- Multifamily (Class B): 5.0–6.0%
- Industrial / Warehouse: 5.5–6.5%
- Retail (Grocery-Anchored): 5.75–6.5%
- Medical Office: 5.25–6.25%
- Office (Class A Suburban): 6.5–8.5%
- Hotel (Select Service): 7.0–9.0%
- NNN (Credit Tenant): 5.0–6.5%
For a detailed explanation of cap rates, see our complete cap rate guide.
FAQ
How do I use a cap rate calculator?
Input two of the three variables — NOI, property value, or cap rate — and the calculator solves for the third. Use the "Calculate Cap Rate" mode to evaluate a deal at a given price, "Calculate Value" mode to back into what a property is worth at market cap rates, or "Calculate NOI" mode to determine what income is required for a target cap rate.
What cap rate should I use for a Florida commercial property?
Use current market cap rates by asset class and submarket. In Central Florida: Class A multifamily trades at 4.25–5.25%, industrial at 5.5–6.5%, grocery-anchored retail at 5.75–6.5%, medical office at 5.25–6.25%, and select service hotels at 7–9%. Tertiary markets and Class B/C properties trade at higher cap rates.
Is the cap rate calculator accurate for valuation?
The calculator gives a precise mathematical result, but valuation accuracy depends on input quality. Use trailing 12-month actual NOI (not pro forma), use market cap rates appropriate to the asset class and submarket, and adjust for property-specific factors like deferred maintenance, lease terms, and CapEx requirements.
Need a Real Market Valuation?
The calculator gives you the math. Michael Linton gives you the market — 39 years of Central Florida cap rate comps.
Get a Free BPO / Market Valuation