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finance

Cap Rate Calculator

Calculate the capitalization rate of a rental property from its income and value.

$
$
$
Capitalization rate
8%
Net operating income (NOI)
$40,000.00
Currency symbol:

How it works

  1. 1Enter the property value and its annual income.
  2. 2Enter the annual operating expenses.
  3. 3See the net operating income and the cap rate.

Use cases

  • Compare the return of two rental properties.
  • Screen deals quickly by cap rate.
  • See how cutting expenses raises the cap rate.

Frequently asked questions

What is a cap rate?

Net operating income (annual income minus operating expenses, excluding the mortgage) divided by the property value — a measure of unleveraged return.

What counts as NOI?

Annual rental and other income minus operating expenses (taxes, insurance, maintenance, management). It excludes mortgage payments.

Is my data stored?

No. Everything runs in your browser.

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