Cap Rate & Cash-on-Cash Calculator
A quick way to sanity-check a deal. Enter the numbers, and the results update instantly — nothing is saved or sent anywhere.
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This is a simplified estimate for quick reference only — it doesn't account for financing fees, closing costs, depreciation, or taxes. Talk to a partner before making a decision based on these numbers.
Discuss This Deal With UsUnderstanding the numbers
What is NOI (Net Operating Income)?
A property's annual income after operating expenses — gross rental income minus costs like taxes, insurance, maintenance, and management — but before mortgage payments. It's the foundation of commercial property valuation.
What is a cap rate?
Net operating income divided by the property's price, expressed as a percentage. It measures the return the property produces independent of financing, and is the standard way commercial properties are compared and priced.
What is cash-on-cash return?
Your annual cash flow after debt service, divided by the actual cash you invested (down payment and costs). Unlike cap rate, it reflects your financing, so it shows what your money is really earning.
What is a good cap rate for commercial property in Miami?
It depends on asset type, location, tenant quality, and risk — stabilized properties in prime submarkets trade at lower cap rates than value-add deals in emerging areas. For a read on a specific property or submarket, request a complimentary consultation and we'll benchmark it against current comparables.