Capitalization Rate (Cap Rate) Calculator
Calculate the cap rate for investment property to evaluate income-generating potential independent of financing.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
NOI = Gross Rent − Expenses; Cap Rate = NOI / Market Value × 100
Cap rate measures a property's income yield as if purchased with cash, allowing fair comparison across markets.
Frequently Asked Questions
Is cap rate the same as ROI?
No. Cap rate ignores financing. ROI considers your actual cash invested including mortgage.