Calculator guide · available in the app
Compare the income, not just the asking price.
Cap rate is a useful shorthand. It is not a substitute for checking what went into the income.
Understand capitalization rate, NOI, and implied property value with a worked cap-rate example and Kora’s real-estate calculator workflow.
Available now on iPhone, iPad, and native Mac. Free download; advanced workflows require Kora Intelligence.
How the estimate works
Cap Rate: the useful part, explained.
Cap rate (%) = annual NOI ÷ property value × 100
NOI is effective gross income less operating expenses, before debt service. Use a property price/value basis appropriate to the comparison. For a target cap rate expressed as a decimal, implied value = NOI ÷ target cap rate.
A worked example.
Illustration: $60,000 annual NOI on a $1,000,000 price gives a 6% cap rate. At a 7.5% target cap rate, the same NOI implies $800,000—not a guaranteed achievable sale price.
Illustrative planning example only. Not a quote, appraisal, commitment, or prediction.
Keep the assumptions in view.
- Do not substitute gross rent for NOI.
- Compare the same operating period and expense treatment.
- Cap rate alone does not measure financing, capital costs, or the full investment risk.
Take the calculation into the property work.
Keep the assumptions clear, add your branding, and give the next conversation something useful to start from.
Available now on iPhone, iPad, and native Mac. Free download; advanced workflows require Kora Intelligence.
A few useful answers
Before the next step.
What does the Cap Rate page provide?
An explanation, a worked example, and the native Kora app workflow. This page does not contain a live browser calculator.
Are these current rates or transaction terms?
No. Worked examples and prefilled values are illustrative assumptions. Use terms appropriate to your scenario and verify the result with the relevant professional.
Can I keep a branded summary in Kora?
Kora supports branded calculator summaries. Advanced Property Room reports are part of the separate room workflow; check the availability notice and current App Store release.