Cap Rate Calculator
Last updated: 2026-08-24
Cap Rate Calculator — Calculate capitalization rate.
Inputs
Result
Enter values and press Calculate
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How to use it
- {'step': 1, 'description': 'Divide NOI by property value', 'calculation': '$42,000 ÷ $525,000 = 0.08'}
- {'step': 2, 'description': 'Convert to percentage', 'calculation': '0.08 × 100 = 8%'}
Common mistakes
- ⚠️ Using gross income instead of net operating income (NOI)
- ⚠️ Not properly calculating NOI by subtracting all operating expenses
- ⚠️ Comparing cap rat is across different property typ is without adjustment
Worked example
Calculate cap rate: 200,000 property, 20,000 NOI.
The cap_rate of {cap_rate}% indicat is the property's unleveraged return based on current income.
Input guide
| Field | Typical range |
|---|---|
| noi | $5,000 - $500,000+ net operating income |
| value | $100,000 - $10,000,000+ property values |