Cap Rate Calculator
Calculate the capitalization rate of a rental property from its price, rent, vacancy and operating expenses, along with its net operating income.
Result
Cap rate
6.12%
- Net operating income (NOI)
- $30,600.00
- Rent collected after vacancy
- $45,600.00
- Gross rent per year
- $48,000.00
Common questions
What is a good cap rate?
Many investors look for 5% to 10%. Lower cap rates are typical in expensive, stable markets; higher ones come with more risk or work.
Does cap rate include the mortgage?
No. Cap rate ignores financing, so you can compare properties as if bought with cash. Use a cash-on-cash return calculator to include the loan.