Cap Rate Calculator
Calculate your capitalization rate.
Use net operating income and purchase price to understand yield.
Income
Operating expenses (annual)
Property
Cap Rate
6.70%
Above-average yield
Often found in secondary markets or value-add deals. Higher income, higher risk.
NOI breakdown
Gross rent$36,000
Vacancy (5%)−$1,800
Effective income$34,200
Operating expenses−$10,736
NOI$23,464
Implied price at target cap rate
4% cap rate$586,600
5% cap rate$469,280
6% cap rate$391,067
7% cap rate$335,200
8% cap rate$293,300