Cap Rate Calculator

Calculate capitalization rate for investment properties

Property Price ($)

Monthly Rent ($)

Vacancy Rate (%)

Annual Operating Expenses ($)

Other Annual Income ($)

Gross Annual Income

Effective Gross Income

Net Operating Income (NOI)

Cap Rate

Understanding Cap Rate

Cap rate = Net Operating Income / Property Price. It measures the potential return on investment. Higher cap rates indicate higher potential returns but may also mean higher risk. Typical cap rates range from 4-10%.