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Cap Rate Calculator

Capitalization rate expresses annual net operating income as a share of price. It lets you compare properties without regard to how each is financed.

Prefilled numbers are examples. Replace them with your own.

Optional. Leave empty to skip.

Your result appears here after you press Calculate.

How it is calculated

  • Cap rate = NOI ÷ property price × 100.
  • Implied value at a target cap rate = NOI ÷ (target cap rate ÷ 100).

Assumptions and limits

  • Prefilled numbers are examples for illustration. Replace them with quotes and prices from your own area.
  • NOI must exclude loan payments, depreciation and income taxes.
  • A single-year NOI can mislead if the year was unusual.

For general education only. This is not investment, tax, legal or financial advice. Real results depend on financing, taxes, local market conditions and unexpected costs. Consider speaking with a qualified professional before buying or selling property.

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