Estimate a rental property's capitalization rate — the annual return on the purchase price before financing. Enter the price, gross rental income, vacancy, and operating expenses to see the cap rate and net operating income (NOI).
Enter your property details and click Calculate to see the cap rate.
The capitalization rate measures a property's unleveraged annual return. It is calculated as:
Operating expenses include property taxes, insurance, maintenance, repairs, property management, and utilities you pay. They do not include mortgage principal and interest, which is why cap rate reflects the property itself rather than your financing.
There is no single "good" cap rate — it varies by market, property type, and risk. Stable properties in strong markets often trade at lower cap rates, while higher-risk or higher-growth properties tend to show higher cap rates.
Note: This is an estimate for comparison only and does not account for financing, capital expenditures, or appreciation. Consult a qualified professional before making investment decisions.