What the calculation measures
NOI is effective property income minus operating expenses before mortgage payments, income taxes and depreciation.
How to interpret the result
Cap rate is useful for comparing property operating yield, but it does not measure leveraged cash return.
Run scenarios instead of one answer
Change the most uncertain input and compare outcomes. A calculator is most useful when it shows sensitivity, not when one estimate is treated as a guarantee.
Limits and assumptions
Expense definitions and market cap rates vary; do not exclude real operating costs just to improve the result.