Calculator · cap rate calculator

Cap rate calculator for self storage

Find a facility's capitalization rate in seconds — the single most quoted measure of real-estate yield.

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Results

Enter the figures above to see a result.

Estimates only — not investment advice.

Formula

Capitalization rate

Cap rate = Net operating income ÷ Purchase price × 100

NOI is annual income after operating expenses but before debt service and capital expenditure. Cap rate deliberately ignores financing so two buyers can compare the same asset.

Worked example

A facility is listed at $1,000,000 and produces $65,000 of annual NOI. The cap rate is $65,000 ÷ $1,000,000 × 100 = 6.5%. If a comparable facility across town trades at a 7.5% cap, it is priced more cheaply per dollar of income.

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