Cap Rate Calculator
Cap rate (capitalization rate) is a property's net operating income divided by its price — the unleveraged yield, and the fastest way to compare deals. Enter the numbers below to get NOI and cap rate instantly.
Results
- Effective gross income
- $22,800
- Net operating income (NOI)
- $16,800
- Cap rate
- 6.7%
Estimates for educational use — not financial advice. Verify every figure for your own deal.
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Go deeper
Learn the strategy behind the numbers: Why savvy investors manufacture value instead of waiting for the market to hand it to them.
Read: Forced AppreciationFAQ
What is a good cap rate?+
It depends on the market and risk. Many investors target 5–8% in stable markets, with higher cap rates in higher-risk or cash-flow markets. A 'good' cap rate is one that beats your alternatives at a risk you're comfortable with.
Does cap rate include the mortgage?+
No. Cap rate is unleveraged — it ignores financing so you can compare properties apples-to-apples. To factor in your loan, use the cash-on-cash calculator.
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Want this as a spreadsheet?
Download the free Rental Property ROI Calculator — the Excel version of this tool, with Buy & Hold and BRRRR analyzers built in.