Cap Rate Calculator Widget

How to Add This Widget to Your Website

<div class="cap-rate-calculator">
    <iframe src="https://calcdeck.com/widgets/cap-rate" 
            width="100%" 
            height="400" 
            frameborder="0">
    </iframe>
</div>

Understanding Cap Rate

Capitalization rate (cap rate) is a crucial metric in real estate investment analysis that measures a property's potential return on investment. It's calculated by dividing the net operating income (NOI) by the property's current market value.

Key Components:

• Net Operating Income (NOI): Annual income generated by the property minus operating expenses
• Property Value: Current market value or acquisition cost of the property

Interpreting Cap Rates:

• Higher cap rates (>8%) typically indicate higher risk and potentially higher returns
• Lower cap rates (<6%) usually suggest lower risk but potentially lower returns
• Market average cap rates typically range from 4% to 10%