Cap Rate Calculator

Calculate capitalization rate to compare investment properties regardless of financing.

Learn: What is Cap Rate?

What is it?

Capitalization Rate (Cap Rate) measures a property's unlevered return - what you'd earn if you paid all cash. It's calculated by dividing Net Operating Income (NOI) by the property's value.

Cap Rate = (NOI ÷ Property Value) × 100

NOI = Gross Rent - Operating Expenses (excludes mortgage)

Why Should You Care?

Cap rate lets you compare properties apples-to-apples regardless of how they're financed. A $500K property with 6% cap rate generates the same relative income as a $1M property at 6% cap rate.

Compare deals across different price points
Assess risk (higher cap = higher risk/reward)
Reverse-engineer property values

Industry Benchmarks (Varies by Market & Asset Class)

3-4%Class A / Prime

5-6%Class B / Suburban

7-8%Class C / Value-Add

9%+High Risk / Rural

Note: Lower cap rates typically indicate lower risk, prime locations, or appreciating markets. Higher cap rates often mean higher risk or secondary markets.

Property Details

Property Value / Purchase Price

Monthly Gross Rental Income

Gross scheduled rent per month

Monthly Operating Expenses

Taxes, insurance, maintenance, vacancy, management (NO mortgage)

Net Operating Income

Enter property value and rental income to calculate NOI

Cap Rate

Enter your property details to see the cap rate

Compare cap rates across your entire portfolio

See cap rates for every property at a glance
Track how cap rates change with market values
Identify which properties are undervalued