Real Estate Calculators
Cap Rate Calculator
Enter a rental property's price, annual income, and annual operating expenses to calculate its capitalization rate (cap rate).
8.57%
Cap rate
$30,000
Net operating income
Cap rate = Net Operating Income ÷ Purchase Price. Doesn't account for financing costs — it's a way to compare properties independent of how they're financed.
How to use this tool
- 1Enter the property price.
- 2Enter annual rental income and operating expenses.
- 3See the net operating income and cap rate.
Frequently asked questions
What counts as an operating expense?+
Property tax, insurance, maintenance, property management, and vacancy allowance — but not mortgage payments, since cap rate is meant to compare properties independent of financing.