What is considered a good Cap Rate?
Typically, a Cap Rate between 4% and 10% is common depending on market location, property risk, and asset condition.
Cap Rate (Capitalization Rate) Calculator
Calculate real estate capitalization rate (Cap Rate) and Net Operating Income (NOI) for property investments.
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.
- Cap Rate (%) = (Net Operating Income ÷ Current Market Property Value) × 100
- Net Operating Income (NOI) = Gross Rental Income - Operating Expenses
Frequently Asked Questions
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Cap Rate (Capitalization Rate) Calculator · Real Estate · property · investment · yield · noi