Calculator
This calculator is designed for real estate professionals to evaluate commercial property investments. Input your assumptions to generate a pro forma financial statement.
Results
Net Operating Income (NOI):
$0.00
Cap Rate:
0%
Data Source and Methodology
All calculations are based on standard real estate pro forma models. For further details, refer to authoritative sources such as industry whitepapers and government publications.
The Formula Explained
The Net Operating Income (NOI) is calculated as:
\[\text{NOI} = \text{Operating Income} - \text{Operating Expenses}\]
The Cap Rate is calculated as:
\[\text{Cap Rate} = \left(\frac{\text{NOI}}{\text{Property Value}}\right) \times 100\]
Glossary of Variables
- Property Value: The total market value of the property.
- Operating Income: Total income generated from the property.
- Operating Expenses: Total expenses incurred to maintain the property.
- Net Operating Income (NOI): Income after deducting operating expenses.
- Cap Rate: The rate of return on a real estate investment property.
Frequently Asked Questions (FAQ)
What is a Pro Forma in Real Estate?
A pro forma is a financial statement that projects the future income and expenses of a property.
Why is Cap Rate important?
Cap Rate helps investors gauge the potential return on investment of a property.
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
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Formula (extracted LaTeX)
\[\text{NOI} = \text{Operating Income} - \text{Operating Expenses}\]
\text{NOI} = \text{Operating Income} - \text{Operating Expenses}
Formula (extracted LaTeX)
\[\text{Cap Rate} = \left(\frac{\text{NOI}}{\text{Property Value}}\right) \times 100\]
\text{Cap Rate} = \left(\frac{\text{NOI}}{\text{Property Value}}\right) \times 100
Formula (extracted text)
\[\text{NOI} = \text{Operating Income} - \text{Operating Expenses}\]
Formula (extracted text)
\[\text{Cap Rate} = \left(\frac{\text{NOI}}{\text{Property Value}}\right) \times 100\]
Variables and units
- No variables provided in audit spec.
Sources (authoritative):
- NIST — Weights and measures — nist.gov · Accessed 2026-01-19
https://www.nist.gov/pml/weights-and-measures - FTC — Consumer advice — consumer.ftc.gov · Accessed 2026-01-19
https://consumer.ftc.gov/
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.