Financial
Commercial Property Calculator
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Using the Commercial Property Calculator
Commercial real estate is valued based on its ability to generate income. This calculator focuses on key performance metrics like Cap Rate and NOI to evaluate the viability of a commercial asset.
How it Works
1
Enter the Gross Potential Income and Vacancy Rate.
2
Input all Operating Expenses (taxes, insurance, maintenance).
3
Review the Net Operating Income (NOI).
4
Calculate the Cap Rate by dividing NOI by the Purchase Price.
Technical Formula
Cap Rate = (Net Operating Income / Purchase Price) x 100