Cap rate calculator for Mexico real estate
Calculate net operating income and an unlevered capitalization rate from your own purchase, rent, vacancy, and expense assumptions. The tool does not insert a market rent or cap-rate benchmark.
Calculate cap rate
Blank optional fields are calculated as zero.
Enter your own assumptions. No market value is filled automatically.
Arithmetic only, not an appraisal or benchmark. Verify every assumption with deal evidence.
What the calculation does
NOI is effective gross income less recurring operating expenses. Total entered cost basis is purchase price plus the additional costs you enter.
- 01
Builds annual income
Monthly rent is annualized and combined with any other recurring property income.
- 02
Calculates NOI
The vacancy allowance and annual operating expenses are deducted before financing.
- 03
Calculates cap rate
NOI is divided by the entered cost basis. Debt service and future appreciation are excluded.
Inputs and limits
- Purchase price and additional acquisition or renovation costs
- Monthly gross rent, other annual income, vacancy, and operating expenses
- A transparent NOI, gross income yield, and unlevered cap rate
- No automatic rent, expense, or vacancy assumption
- No financing, tax, depreciation, IRR, or exit-value model
- No claim that the result is a market benchmark or appraisal
Cap rate questions
What is cap rate in real estate?
Cap rate is annual net operating income divided by the property value or cost basis used in the analysis. It is an unlevered measure, so debt service is not part of the formula.
What expenses belong in NOI?
NOI normally deducts recurring property operating expenses and vacancy from operating income. Financing costs, income tax, depreciation, and owner-specific debt payments sit outside NOI.
Does the currency change the cap rate?
No. The ratio is the same in MXN or USD when every monetary input uses the same currency.
Does this calculator estimate market rent in Mérida or Yucatán?
No. It only calculates from the rent and expense assumptions entered by the user. Market rent requires current, sourced comparable evidence.
Need a unit-price comparison?
Compare the entered price and measured area of one or two properties without mixing asking-price inputs with market evidence.