Cap Rate Calculator
Last updated: October 15, 2026
Calculate capitalization rate from property value and net operating income.
Capitalization rate
—
- Net operating income: —
- Monthly NOI: —
On this page
Quick summary: Calculate capitalization rate from property value and net operating income.
Read the method, example and limitations
Updated reference sections in this guide are in English.
Guide language: English. Updated October 15, 2026.
What this calculator estimates
Cap Rate Calculator
Inputs and units
Use the units shown for Property value ($), Annual gross rent ($), Annual operating expenses ($). Required fields cannot be blank. Use zero only where that field and the model allow it. Select Calculate after changing a scenario.
Method and assumptions
Cap rate is (annual rent - annual operating expenses) / property value × 100. Negative NOI and cap rates are valid loss scenarios.
Worked example
Rent 1,000 and expenses 1,500 on a 100,000 property give NOI -500 and cap rate -0.50%.
Limitations
Operating expenses should exclude debt service. Property value must be positive; this is not total investment return.