Cap Rate Calculator
Calculate the capitalization rate of a real estate investment property to evaluate its profitability.
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Helpful Tips
- •Save your calculations by bookmarking this page with your inputs in the URL.
- •Try different scenarios to understand how changes affect your results.
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When to Use This Calculator
Use when evaluating the profitability of a real estate investment or comparing the return on different properties.
cap ratereal estateinvestmentnoiproperty valuation
Who Benefits Most
- •Real estate investors
- •Property buyers
- •Real estate agents
- •Appraisers
2 min
BeginnerReal-World Example: Rental Property Evaluation
Scenario
An investor is considering a property with a market value of $1,000,000 that generates a Net Operating Income of $50,000 per year.
Outcome
The calculator showed a cap rate of 5%, allowing the investor to compare this property's return against other investment opportunities and market benchmarks.
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