Valuation
Cap rate & value
What is this income worth, and what does the price imply?
Solves any one of net operating income, capitalisation rate and value from the other two, then expresses the result per unit and per square foot and shows how sensitive it is to a shift in the cap rate.
Every default here is an illustrative figure chosen to be plausible. Nothing on this page is a rate sheet, a quote or an offer, and no licence or NMLS number exists to attach to it.
Value——
Price per unit——
Price per square foot——
Gross rent multiplier—Value over gross potential rent
What a shift in the cap rate does
IllustrativeValue moves inversely to the cap rate, and it moves hard. This is the single largest risk in an underwriting file that nobody controls — and the reason exit cap assumptions get stressed rather than trusted.
Sensitivity band
| Cap rate | Value | Change | Per unit | Per SF |
|---|
Assumptions on this page
- Cap rate is net operating income divided by value. It is a market observation, not a return you earn.
- Net operating income is taken as stabilised and after reserves. Capitalising a pro-forma NOI at a market cap rate produces a number nobody will lend against.
- Price per unit and per square foot are context, not valuation. They are how a market talks, not how an appraiser concludes.
- Every default here is an illustrative figure on a demonstration site.
Other calculators
- Start hereLoan sizingHow large a loan does this property actually support — and which test is stopping it?
- CoverageDSCR & debt yieldDoes the income cover the debt, and by how much?
- ScheduleAmortisation & balloonWhat is the payment, and what is still owed on the maturity date?
- TransitionalBridge to permanentDoes the exit retire the bridge?