The Cap Rate Calculator converts a property’s income into its capitalization rate — the return on the building itself, before any loan. Enter rent, vacancy, other income and operating expenses to see NOI, effective gross income and a cap rate you can benchmark against the market.
Cap Rate Calculator
Compute capitalization rate from property price, rent, vacancy and operating expenses. See NOI, effective gross income and a benchmark of a healthy cap rate.
Income
Operating expenses (annual)
Cap rate
Export & Share
About Cap Rate Calculator
Features
- NOI: Income minus operating costs, before financing.
- Cap rate: NOI ÷ price, the asset return.
- EGI: Effective gross income after vacancy.
- Expense view: Operating costs isolated.
- Export: CSV, JSON or plain text.
How to Use
- Price & rent: Property value and gross rent.
- Vacancy & other: Vacancy percent and other income.
- Expenses: Tax, insurance, maintenance, management, utilities, HOA.
- Read: NOI, EGI, cap rate.
- Export.
Examples
Example 1 — Baseline. $400k, $2,500 rent, 5% vacancy: cap rate near 6%.
Example 2 — Vacancy bite. 10% vacancy lowers NOI and cap rate.
Example 3 — Higher rent. $3,000 rent lifts cap rate above 7%.
Example 4 — Cost heavy. High taxes/maintenance suppress the rate.
Example 5 — Compare. Same cap across two buildings signals similar asset returns.
Benefits
- Asset apples-to-apples: Financing removed for fair comparison.
- NOI clarity: See what the building earns before debt.
- Benchmark: Compare against market cap rates.
- Private: No account, no upload, nothing stored.
Frequently Asked Questions
What is cap rate?
Net operating income divided by property price. It measures return on the asset, ignoring financing.
What is NOI?
Effective gross income (rent minus vacancy, plus other income) minus operating expenses, before debt service.
Why exclude financing?
Cap rate compares buildings; your loan is a separate decision captured by cash-on-cash.
What is a healthy cap rate?
It varies by market and risk; higher often means more risk or more management. Use it to compare like assets.
Does it include improvements?
Capital expenditures are not in NOI; they are balance-sheet items, not operating expenses.
Should I use it alone?
No — pair with cash-on-cash and appreciation for the full picture.
Is my data stored?
No. All calculation runs in your browser; nothing is uploaded, saved or logged.