Instant calculator
Cap Rate Calculator
This cap rate calculator helps real estate investors turn annual income and operating expenses into a quick property return estimate.
How to use
Quick steps
- Enter annual gross income, annual operating expenses, purchase price.
- Review the instant answer block and supporting calculations.
- Compare the result with related tools in the same category before making a decision.
Formula
How this calculator works
Cap rate = net operating income / property price x 100
Cap rate is a screening metric. It does not include financing structure, taxes, or future maintenance surprises.
FAQ
Common questions
How does the cap rate calculator work?
It uses Cap rate = net operating income / property price x 100. Enter annual gross income, annual operating expenses, and purchase price to generate an instant estimate.
When should I use this cap rate calculator?
Estimate property cap rate using annual income, expenses, and purchase price.
What should I keep in mind?
Cap rate is a screening metric. It does not include financing structure, taxes, or future maintenance surprises.