Property Valuation Calculator

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USD
USD

How to Calculate Property Valuation

  1. Net Operating Income (NOI):\text{NOI} = \text{Gross Rental Income} - \text{Operating Expenses}
  2. Property Valuation Formula:\text{Property Valuation} = \frac{\text{NOI}}{\text{Capitalization Rate} / 100}

Example

Let’s calculate the value of a rental property:

  • Gross Rental Income (Annual): $36,000
  • Operating Expenses (Annual): $8,000
  • Capitalization Rate: 6%

Calculate Net Operating Income (NOI)

\text{NOI} = 36,000 - 8,000 = 28,000 \, \text{USD/year}

Calculate Property Valuation

\text{Property Valuation} = \frac{28,000}{6 / 100} = 466,667 \, \text{USD}

The estimated value of this property is $466,667.