Cap Rate Calculator
The financing-neutral metric for comparing rental properties. Computes NOI and cap rate from rent, vacancy, and operating expenses.
What is cap rate?
Capitalization rate is the ratio of a property's annual net operating income (NOI) to its market value, expressed as a percentage. It tells you the return you'd get if you bought the property in cash with no debt — making it a useful apples-to-apples comparison metric across deals.
Cap Rate = NOI / Property Value × 100
What counts in NOI?
NOI is gross rent minus vacancy minus operating expenses. Operating expenses include property tax, insurance, maintenance, property management, HOA, and a capex reserve for major repairs. NOI excludes mortgage payments, depreciation, and capital expenditures.
Disclaimer: Estimates only. Cap rate excludes financing. Not financial advice.