Cap Rate Calculator
Calculate the Capitalization Rate and Net Operating Income (NOI) for real estate investments.
Cap Rate (%)
9.00%
Net Operating Income (NOI)
$45,000
How Capitalization Rate (Cap Rate) Is Calculated in Real Estate
Cap Rate reflects the expected net rate of return produced by a commercial or residential real estate property.
1Cap Rate Formula
Cap Rate (%) = (Net Operating Income ÷ Current Market Property Value) × 100
Net Operating Income (NOI) = Gross Rental Income - Operating Expenses
Frequently Asked Questions
Typically, a Cap Rate between 4% and 10% is common depending on market location, property risk, and asset condition.