loader image
Real Estate Glossary

Implied cap rate

inflation calculator
Written by Richard Wilson

The implied cap rate is calculated by dividing the (NOI) net operating income by the quantity of a REIT’s equity market capitalization and the full amount of outstanding debt. It can be used as a benchmark for an investment decision.

The implied cap rate is calculated by dividing the (NOI) net operating income by the quantity of a REIT’s equity market capitalization and the full amount of outstanding debt. It can be used as a benchmark for an investment decision.

About the author

Richard Wilson