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Real Estate⏱ 2 min
Cap Rate Calculator
Calculate the capitalization rate (cap rate) to evaluate and compare real estate investment opportunities.
Free • Accurate • Instant Results
Cap Rate Inputs
$
$
$
Cap Rate
📊6.60%
Annual NOI
💰$26,400
Gross Annual Income
💵$36,000
Annual Expenses
🧾$9,600
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AI Insights
Personalized analysis based on your inputs
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Cap Rate Assessment
A 6.60% cap rate is solid and competitive.
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Formula Used
Capitalization Rate
Cap Rate = NOI / Property Value × 100
Variables
NOI= Net Operating Income (annual income − operating expenses, excludes debt)Example
$26,400 NOI / $400,000 value = 6.6% cap rate
Frequently Asked Questions
4-10% is typical depending on market and risk. Higher cap rates suggest higher returns but often higher risk areas; lower cap rates are common in stable, desirable markets.
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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates based on inputs you provide. They are not financial, tax, investment, or legal advice. Consult a qualified financial professional before making financial decisions. Actual results may vary based on market conditions, tax laws, and individual circumstances.