Financials
The capitalization rate is NOI divided by current market value (or purchase price), expressed as a percentage.
Updated Sep 12, 2026
Cap rate = NOI ÷ Value
A capitalization rate converts a year's NOI into a simple yield on value. A $100,000 NOI on a $2,000,000 property is a 5% cap rate.
Investors use cap rates to compare similar assets in the same market. Mixing asset classes or using asking prices instead of a supported value makes the ratio misleading.
Unitz keeps NOI current so cap-rate conversations start from the same operating numbers. See Portfolio Analytics.
Cash-on-cash return is annual pre-tax cash flow divided by the cash you invested, including down payment and closing costs.
The gross rent multiplier is purchase price divided by annual gross scheduled rent, used as a quick screening ratio.
Net operating income is rental revenue minus operating expenses, before debt service and capital expenditures.
See this in the product: Portfolio Analytics
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