Calculateur par Approche de Revenu — Formule

Income Approach to Value

The income approach (direct capitalization) converts a property's income stream into a value estimate using a cap rate derived from market data.

Steps

1. Start with gross annual income 2. Subtract vacancy allowance to get effective gross income 3. Subtract operating expenses to get net operating income (NOI) 4. Divide NOI by the market cap rate to get property value

Formula

Value = NOI / Cap Rate

Exemple Résolu

A duplex generates $60,000 gross income, with 5% vacancy, $18,000 expenses, and a 7% market cap rate.

  1. Effective gross income: $60,000 x (1 - 0.05) = $57,000
  2. Net operating income: $57,000 - $18,000 = $39,000
  3. Property value: $39,000 / 0.07 = $557,143