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Finance

Capitalization Rate Calculator

Compare annual net operating income with property value.

Amounts stay on this deviceMethod and assumptions below

Your financial inputs

Runs on your device

YOUR FINANCIAL SUMMARY

Your result

Let’s calculate.

Use the Calculate button to see your result.

Estimate based on your inputs and the stated assumptions.

How to use this tool

  1. Enter annual net operating income, property value.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Cap rate = annual NOI/property value × 100%.

A WORKED EXAMPLE

Using annual net operating income = 18000 money, property value = 300000 money, the result is 6 %. Change these example inputs to match your task; use the method above to check each step.

What to keep in mind

NOI should exclude financing and depreciation under the convention used here. A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.

Common questions

Which inputs does this calculation need?

Compare annual net operating income with property value. Enter annual net operating income in money, property value in money. The filled example is editable and is not a saved personal record.

How should I interpret the result?

NOI should exclude financing and depreciation under the convention used here. A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.

Methodology maintained by ClarityKit. How these tools are built and checked.