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Cap Rate Calculator

Measure unleveraged yield on any rental property.

Financial Metrics

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Cap Rate
How this number is calculated
Basis
Unlevered annual yield
Formula
Cap rate = annual NOI / property value
Includes
  • annual NOI
  • property value or purchase price
Excludes
  • loan payments
  • income tax
  • depreciation
  • one-time acquisition costs
Source
Public calculator inputs
Computed
Live from the values currently entered above
Notes
Compare cap rates only across similar property types and submarkets.
How it works
1

Divide NOI by property value

2

Multiply by 100 to express as a percentage

3

Compare to cap rates on similar properties in the same submarket

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Related tools and terms

NOI Calculator

Calculate Net Operating Income from gross rent, vacancy, and operating expenses.

Gross Rent Multiplier Calculator

Another fast comp screen using gross rent and price.

Cash on Cash Return Calculator

See the first-year yield on the cash you actually put in.

Capitalization Rate (Cap Rate)

View glossary definition

Net Operating Income (NOI)

View glossary definition

Frequently asked questions
What is a good cap rate?
It depends on the market and asset class. Compare only to similar properties nearby.