Capitalization Rate (Cap Rate) Calculator
Calculate a property capitalization rate from net operating income and property value.
Enter your figures
Enter the values below to calculate your result.
Calculation Results
Based on the figures you entered.
How the Capitalization Rate (Cap Rate) Calculator Works
Calculate a property capitalization rate from net operating income and property value.
Real estate calculations can vary by jurisdiction, financing terms, tax rules and reporting conventions. Use the definition appropriate to your situation.
How to use this calculator
What to enter
Enter or select the following as requested: Currency — Display Only; Net operating income (NOI); Property value. Follow the units, valid ranges, examples, and options displayed beside each field.
What the result means
The property result estimates a cost, income, valuation, return, or affordability measure from the price, rent, financing, expense, and timing assumptions entered. Check whether taxes, insurance, vacancy, repairs, fees, financing costs, and local transaction charges are included.
When to use it
Use this to compare property scenarios or prepare an initial budget. Actual values depend on location, market conditions, contracts, taxes, and financing; verify local figures and professional advice before making a purchase or investment decision.