Cap Rate Calculator
Find a property's capitalization rate from its value, income and operating expenses, or its value from a cap rate.
Change the values and press Calculate to work out your own figures.
Cap rate
Enter the value, rental income and operating expenses.
Show the working
- NOI = income − operating expenses (a year)
- cap rate = NOI ÷ value
Value from a cap rate
Enter the net operating income and cap rate.
Show the working
- value = NOI ÷ cap rate
How to use it
Enter the value, rental income and operating expenses. Enter the net operating income and cap rate.
Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.
Key facts
NOI = yearly income − yearly operating expenses cap rate = NOI ÷ value value = NOI ÷ cap rate
Reading it
The cap rate ignores the loan, so it compares properties, not your return; that's cash-on-cash or IRR.
Questions
What is the cap rate on a $700,000 property with $60,000 NOI?
8.57%.
Formulas
NOI = yearly income − yearly operating expenses cap rate = NOI ÷ value value = NOI ÷ cap rate
Sources
Limitations
- Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
- Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.