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Cap Rate Calculator

Calculate capitalization rate from rental income and expenses, and see the property value implied by a target cap rate.

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  • Instant results
  • Restores your last inputs

1. Enter your numbers

Start with the assumptions you know.

2. Adjust the scenario

Change one input to see what matters.

3. Review the result

Use the estimate to compare and prepare.

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
$37,200
Less vacancy
− $1,116
Effective gross income
$36,084
Operating expenses
− $8,600
Net operating income
$27,484
Expense ratio

Operating expenses as a share of effective income

23.8%

Cap rate excludes financing on purpose — it measures the property, not the mortgage.

Where the expenses go

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About this cap rate calculator

Use this free Canadian real estate calculator to explore scenarios before speaking with a lender, REALTOR®, lawyer, accountant, or other qualified professional. Results are estimates and should not replace professional advice.