Cap Rate Calculator
Calculate capitalization rate from rental income and expenses, and see the property value implied by a target cap rate.
Income and expenses
$
$
$
%
$
$
$
$
$
%
%
Cap rate
Cap rate
3.93%
Net operating income over property value
Value at a 5% cap
$549,680
$150,320 below the price entered
Gross annual income
$37,200Less vacancy
− $1,116Effective gross income
$36,084Operating expenses
− $8,600Net operating income
$27,484Expense ratio
23.8%Operating expenses as a share of effective income
Cap rate excludes financing on purpose — it measures the property, not the mortgage.
Where the expenses go