Free Cap Rate Calculator
Capitalization rate on a rental property.
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Result
Cap rate
6.73%
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Short answer
Capitalization rate on a rental property.
What is the Cap Rate Calculator?
Capitalization rate on a rental property.
How does the Cap Rate Calculator work?
Enter the inputs above and read the result.
Formula
Variables
NOINet operating income (income after expenses, before debt)
Explanation
Cap rate compares unleveraged yield across properties; it excludes mortgage payments.
Examples
Applications
Advantages
Limitations
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Related concepts
The Cap Rate Calculator sits inside the Finance Calculators hub, in the budgeting & everyday money cluster. Household cash management and small money decisions. Understanding the terms below makes the output easier to interpret and easier to compare against neighbouring measures.
Practical use cases and industry applications
Understanding Cap Rate
Capitalization rate on a rental property. Within finance calculators, cap rate belongs to the budgeting & everyday money cluster, where it shares terminology and assumptions with closely related tools.
Learning how cap rate is calculated
Cap rate compares unleveraged yield across properties; it excludes mortgage payments. Working through the variables one at a time — NOI — makes the result reproducible by hand and easier to sanity-check.
Using cap rate to make a decision
Because outputs depend on the assumptions you enter, run more than one scenario before committing to a figure.
How cap rate compares with related measures
cash flow, sinking fund, emergency buffer, net worth all describe adjacent aspects of budgeting & everyday money. Comparing this calculator's output against those measures — using the related tools listed on this page — prevents a single metric from being read in isolation.
Frequently asked questions
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