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Finance

Capitalization Rate Calculator

Compare annual net operating income with property value.

Amounts stay on this deviceMethod and assumptions below
Financial workspace
Financial workspace

Check the assumptions, then compare another scenario.

See the method

Build a scenario

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.

Input reference and sample values

Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.

InputFormat and unitsSample
Annual net operating incomeNumeric value. Unit: money.18000
Property valueNumeric value. Unit: money. Must be greater than zero.300000

Result for these sample inputs

6 %

Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.

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.

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