Cap Rate Calculator

About this calculator

This calculator finds a property's capitalization rate — net operating income (NOI) divided by current market value or purchase price, expressed as a percentage — the standard shorthand real estate investors use to compare the return of one income property against another regardless of size or price.

Real estate investors and brokers use cap rate to quickly screen deals, appraisers use it to estimate a property's value from its income, and landlords use it to track how a rental's return changes over time. A higher cap rate generally signals higher potential return, but often comes with higher risk.