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Cap Rate Calculator

Calculate capitalization rates instantly to evaluate real estate investments. Analyze NOI, compare properties, and project future returns—all without creating an account.

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Calculator Features

Instant Results

Real-time calculations as you type with live preview

Track & Compare

Save calculations and visualize trends over time

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Cap Rate Calculator
Analyze your investment potential
Good

Live Cap Rate

6.00%

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Enter your property details and click Calculate to see your cap rate analysis

Quick Tip

A cap rate between 5-10% is generally considered good for most markets. Lower cap rates (4-5%) are typical for stable, low-risk properties, while higher cap rates (8-12%) may indicate higher returns but potentially more risk.

How to Calculate Cap Rate in 3 Steps

1

Enter Property Details

Input your gross annual income, operating expenses, and property value

2

Get Instant Analysis

See your cap rate with contextual rating and key financial metrics

3

Compare & Project

Toggle to adjusted mode to forecast future cap rates with different scenarios

Cap Rate Formula Explained

Cap Rate = (NOI ÷ Property Value) × 100

NOI (Net Operating Income)

Gross rental income minus operating expenses (taxes, insurance, maintenance, management). Does NOT include mortgage payments.

Property Value

Current market value or purchase price. Use recent comparable sales or professional appraisal for accuracy.

Example: $100,000 gross income - $40,000 expenses = $60,000 NOI. Property value of $1,000,000. Cap Rate = ($60,000 ÷ $1,000,000) × 100 =

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Cap Rate Calculator FAQ