Cap Rate Calculator
Calculate capitalization rates for real estate investments with comprehensive analysis of NOI, cash-on-cash return, and investment performance metrics
Quick Start Examples
Property Details
Typical cap rate: 4% - 8%
20% of purchase price
Monthly Mortgage Payment
$1,517
Rental Income
Total Annual Income: $28,800
Operating Expenses
Total Annual Expenses: $12,144
Cap Rate Guide
What is Cap Rate?
Capitalization rate = Net Operating Income ÷ Property Value
Good Cap Rates:
• 4-6%: Premium properties, stable areas
• 7-10%: Average market returns
• 10%+: Higher risk, potential value-add
Other Key Ratios:
• GRM: Lower is better (4-10 typical)
• Cash-on-Cash: Your actual return on investment
• 1% Rule: Monthly rent ≥ 1% of purchase price
How to Use
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Enter property value, purchase price, and financing details
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Add all rental income sources (rent, parking, laundry, etc.)
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Include all operating expenses (taxes, insurance, maintenance, etc.)
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Review cap rate vs. market averages for property type
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Analyze cash-on-cash return and other investment ratios
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Copy detailed report for investment analysis and comparison