Cap Rate Calculator
Works out a property’s yearly return before financing.
Cap rate
— %
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
Net operating income —
Effective rent per year —
The formula
cap rate = net operating income ÷ price
It ignores financing, so it compares properties as if each were bought for cash.
What to watch out for
Compare cap rates only within similar areas and property types.
Frequently Asked Questions
What is a good cap rate?
It depends on the market and risk. A higher cap rate often means a riskier property or area.