Free CRE Calculators
Try the numbers in a commercial real estate example. Enter your own figures to see how the calculation works.
Net Operating Income (NOI) Calculator
Calculate the net operating income for a commercial property.
NOI = Effective Gross Income - Operating Expenses (excludes debt service and capital expenditures).
Check the assumptions:
NOI doesn't include mortgage payments or capital improvements (like roof replacement). It's a property's earnings potential before financing costs.
Capitalization (Cap) Rate Calculator
Compare annual operating income with the property value.
Cap Rate = NOI / Property Value. This ratio does not include financing, capital spending or changes in property value.
Check the assumptions:
Cap rates vary by market and property type. Compare your result to local market averages. A significantly higher cap rate may indicate deferred maintenance or tenant issues.
Common Area Maintenance (CAM) Calculator
Calculate a tenant's pro-rata share of CAM charges in a multi-tenant property.
CAM includes landscaping, parking lot maintenance, common utilities, and property management.
Check the assumptions:
Compare the charges with the lease and supporting statements. Ask about the allocation method, permitted expenses, caps and reconciliation process.
Want to work through a commercial example?
The CRE course walks through income, expenses and the questions to ask before relying on a property projection.