Measure a rental property against others using the capitalization rate, the core yield metric real estate investors use to compare deals. Enter the annual net operating income, which is rental income minus operating expenses but before mortgage payments, and the purchase price or current value, and the calculator divides one by the other to give the cap rate as a percent. If you prefer, enter income and expenses separately and let the tool build the net operating income for you. Cap rate strips out financing so two properties can be compared on the asset alone, with higher rates generally signaling more income relative to price but often more risk or work. It ignores appreciation and loan leverage, so pair it with a full analysis. Everything is calculated instantly in your browser and your deal numbers never leave your device.
Capitalization rate equals net operating income divided by property price, expressed as a percentage.
Net operating income is the annual rental income minus operating expenses, before any mortgage payments.
A higher cap rate signals higher yield but often more risk, so it is compared against similar properties in the same market.
Measure a rental property against others using the capitalization rate, the core yield metric real estate investors use to compare deals. Enter the annual net operating income, which is rental income minus operating expenses but before mortgage payments, and the purchase price or current value, and the calculator divides one by the other to give the cap rate as a percent.
Yes. Cap Rate Calculator is completely free, with no sign-up and no usage limits.
Yes. Cap Rate Calculator runs in any modern web browser. There is nothing to download or install.
Yes. Cap Rate Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.