MasterTool

Cap Rate Calculator

Calculate cap rate from your own entered figures.

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

What this tool does

Calculate cap rate from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes financing debt service.

How to use the Cap Rate Calculator

  1. Enter or select annual net operating income.
  2. Enter or select property value.
  3. Read the calculated result; change any measurement to compare alternatives.

Formula

cap rate=annual NOI/property value×100
noi
Annual net operating income
value
Property value

User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes financing debt service.

Worked example

For cap rate calculator, the following measurements illustrate the exact method: Annual net operating income: 24000; Property value: 400000.

Inputs

  • Annual net operating income24000
  • Property value400000

Result

  • Capitalization rate (%)6

Results explained

Capitalization rate (%)
Capitalization rate (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes financing debt service.

Frequently asked questions

cap rate=annual NOI/property value×100

User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes financing debt service.

No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.

This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.

Check period consistency, currency, percentage inputs and the assumptions: User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes financing debt service.