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.
Calculator
Results
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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.