Cap Rate & NOI Calculator for Philippine Commercial Property
Work out cap rate, net operating income, and yield on a Philippine commercial property. Accounts for vacancy, operating expenses, real property tax, and the 5 percent withholding on rent.
Charged by your city whether the unit is occupied or empty, so it belongs in the yield.
Net operating income divided by price. Metro Manila commercial assets commonly land between 5 and 9.5 percent depending on district.
Your tenant withholds ₱15,000 a month as the 5 percent expanded withholding tax on rent. It is creditable against your income tax, so collect the BIR Form 2307 each quarter and claim it.
Estimates only, not financial or tax advice. Confirm figures with a CPA before you commit.
What the cap rate tells you
Cap rate is annual net operating income divided by the purchase price. It strips out how you financed the deal, so it lets you compare a Makati office against a Cavite warehouse on the same basis. Metro Manila commercial assets commonly land between 5 and 9.5 percent depending on district.
Why gross rent overstates your return
A seller quotes gross rent because it is the largest number available. What you keep is net operating income: rent after vacancy, operating expenses, real property tax, and local business tax. A yield computed on gross rent is a marketing figure, and it is usually one to three points higher than reality.
What to verify before you trust the inputs
Ask for the lease contracts and the actual collection records rather than the contracted rent. Ask for two years of real property tax receipts. A building with documented collections is worth more than an identical one with projections, and the gap is exactly the risk you would otherwise carry.
Every listing on CommRey shows its price, floor area, and exact map location, so you can bring real figures back to this calculator.
Browse propertiesRead the guide behind the maths
What each number means, and what changes it.
