Cap Rate Calculator
Use this cap rate calculator to estimate net operating income and cap rate for a rental property.
Estimate cap rate
Your result
How this calculator helps
Cap rate is a common shortcut for comparing income-producing properties because it relates NOI to the property’s price or value.
It is useful for screening, but it still depends on the quality of your vacancy and expense assumptions.
How the math works
NOI = annual gross rent - vacancy loss - annual operating expenses.
Cap rate = NOI ÷ property price or value.
Worked examples
Basic rental property
A property has stable annual rent and straightforward operating costs.
- • Annual rent, vacancy, expenses, value
The cap rate summarizes the property’s operating return before financing.
Higher vacancy assumption
The market may experience more turnover.
- • Higher vacancy loss
Cap rate falls when vacancy loss rises.
Expense-heavy property
Operating costs are unusually high.
- • Higher annual operating expenses
The NOI and cap rate both drop as expenses increase.
Frequently asked questions
Related tools
Compare cap rate with a broader return calculation.
See the financing-sensitive monthly cash flow view.
Compare owner-side housing economics.
Estimate another cost that can affect acquisition planning.
Important note
This is a screening estimate only and not investment advice.