Cap rate calculator (NOI, value from cap rate)
Cap rate is the unleveraged yield of an income property: net operating income divided by price. Commercial units in Noida and Greater Noida trade at 6–9% cap rates; residential flats at 2.5–3.5%. It also works backwards: a target cap rate tells you what a given income is worth.
- Net operating income (yearly)
- ₹5.71 L
- Effective gross income
- ₹6.27 L
- Operating expenses
- ₹56,000
- Value at target cap rate
- ₹81.57 L
- Reading
- Strong for NCR commercial (7%+).
Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.
How it is calculated
EGI = rent × 12 × (1 − vacancy); NOI = EGI − maintenance − tax − management; cap rate = NOI ÷ price; value = NOI ÷ target cap rate. Loan costs are excluded by definition; cap rate measures the asset, not the financing.
Worked example
Shop at ₹80 lakh renting ₹55,000 with 5% vacancy, ₹36,000 CAM and ₹20,000 tax: EGI ₹6.27 lakh, NOI ₹5.71 lakh, cap rate 7.1%. At a 7% target cap rate the shop is worth ₹81.6 lakh, so the asking price is fair.
Frequently asked questions
What is a good cap rate in India?
6–9% for shops and offices in established markets, 8–10% for warehouses, 2.5–3.5% for residential flats, which are bought for appreciation rather than yield.
Cap rate vs rental yield: what is the difference?
Gross rental yield uses rent before expenses; cap rate uses NOI after vacancy and operating costs, so it is lower and more honest.
Does a higher cap rate mean a better investment?
Higher income relative to price, but often higher risk: weaker tenants, older buildings or less liquid locations. Compare within the same asset class.
Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.