Cap Rate Calculator
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Calculate gross and net rental yield on investment property. Enter rent, expenses, and purchase price for annual yield percentage and cash flow analysis.
Calculate cash-on-cash return on rental property investments. Enter down payment, cash flow, and equity invested for annual return on actual cash invested.
Calculate DSCR for commercial real estate loans. Enter NOI and debt service to find coverage ratio required by lenders for investment property financing.
Net operating income divided by property value or purchase price, expressed as a percentage. Excludes financing and depreciation.
Cap Rate = (NOI ÷ Property Value) × 100Operating expenses include taxes, insurance, maintenance, management, and vacancy allowance — not mortgage payments.
NOI = Gross Rental Income − Operating ExpensesRearrange to estimate property value when market cap rate and NOI are known — common in commercial appraisal.
Value = NOI ÷ Cap RateUpdated: July 2026
Cap rate = 48,000 ÷ 600,000 = 8.0%. Compare to market average 6–8% for suburban multifamily in your metro.
Implied value = 120,000 ÷ 0.075 = $1,600,000. Negotiate price if asking exceeds implied value.
Calculate cap rate on pro forma stabilized NOI after renovations, not current trailing income, for after-repair comparison.
Evaluate commercial and residential investment property returns using the capitalization rate. Enter net operating income (NOI) and purchase price or current market value to calculate cap rate and compare deals against market benchmarks.