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Cap Rate Calculator - Capitalization Rate
Free cap rate calculator. Calculate capitalization rate for real estate investments. Compare property values and returns.
Cap Rate Calculator
Calculate capitalization rate
Results
Enter your values to see results
and click the "Calculate" button
Cap Rate Calculator
Calculate the capitalization rate for rental properties. Cap rate is a key metric for comparing real estate investments regardless of financing.
Cap Rate Formula
Cap Rate = (NOI / Property Value) × 100
NOI = Gross Rent - Operating Expenses (excludes mortgage payments). Higher cap rate = higher return but often more risk.
Frequently Asked Questions
What's a good cap rate?
Varies by market: 4-6% in expensive cities (SF, NYC), 8-12% in smaller markets. Higher isn't always better - may indicate higher risk.
Does cap rate include mortgage?
No. Cap rate uses NOI (before mortgage payments). This lets you compare properties regardless of financing. Use Cash-on-Cash return for leveraged returns.
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