Property Valuation Calculator via Income Approach

Real Estate Tools

Calculate property value using the income approach, incorporating NOI, cap rate, vacancy rates, and operating expenses. Essential for real estate investment analysis and purchase price negotiation.

Calculate Implied Property Value

Enter rental income, expenses, and target cap rate for income-based valuation

Annual Gross Rental Income ($)

Vacancy Rate (%)

Property Management ($)

Maintenance & Repairs ($)

Insurance ($)

Property Tax ($)

Utilities ($)

Other Operating Expenses ($)

Legal, accounting, supplies, etc.

Target Cap Rate (%)

Income Approach Formula

Implied Value = NOI ÷ Cap Rate

NOI = Effective Gross Income - Operating Expenses

Effective Gross Income = Gross Income × (1 - Vacancy Rate)

Key Expense Categories

Property Management: Fees for property oversight

Maintenance: Repairs and upkeep costs

Insurance: Property and liability coverage

Property Tax: Local government taxes

Utilities: Water, electricity, gas if not paid by tenant

Vacancy Rate: Percentage of time property is unoccupied

Why Income Approach Matters

Focuses on income potential

Negotiation tool: Determine fair purchase price

Realistic valuation: Includes vacancy and expenses

Investment analysis: Essential for income-producing properties