Free Calculator
Cap Rate Calculator
Calculate the capitalization rate for any investment property. Enter your property value, rental income, and expenses to instantly see your cap rate, NOI, and gross rent multiplier.
Property Details
$
$
Annual Expenses
Cap Rate
5.71%
Moderate — typical for appreciation markets
Net Operating Income
$14,280
annual NOI
Gross Rent Multiplier
10.4x
price / annual rent
1% Rule
0.80%
Below the 1% rule
What-If Scenarios
Stress-test your numbers with one click
NOI Calculation
| Gross Annual Rent | $24,000 |
| - Vacancy Loss | $1,200 |
| = Effective Gross Income | $22,800 |
| - Total Operating Expenses | $8,520 |
| = Net Operating Income (NOI) | $14,280 |
Cap Rate Guide
8%+
High Yield
Typically higher risk or secondary markets
5-8%
Solid
Standard for good rental properties
3-5%
Appreciation
Common in high-growth metros
<3%
Premium
Gateway cities, trophy assets
How Cap Rate is Calculated
Cap Rate = Net Operating Income (NOI) / Property Value
The capitalization rate measures the annual return on an investment property based on its income, without considering financing. A higher cap rate indicates higher potential returns but may also signal higher risk. Cap rates vary by location, property type, and market conditions.
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