Cap Rate Calculator
Calculate capitalization rate from income and expenses, and estimate property value at a target cap rate.
Your numbers
- Net operating income
- $29,600
- Value at target cap rate
- $422,857
- Expense ratio
- 35.09%
How the cap rate calculator works
Cap rate = NOI ÷ property price. Value = NOI ÷ target cap rate. NOI excludes mortgage payments.
Example
Using the default inputs (Annual gross income: $48,000; Vacancy: 5%; Annual operating expenses: $16,000; Purchase price: $400,000; Target cap rate: 7%), the calculator returns cap rate of 7.4%. Change any field above to see your own result and charts update instantly.
Good for these goals
Frequently asked questions
What is a good cap rate?
Typically 5%–10%; lower in high-demand markets and higher in riskier areas.
Does cap rate include financing?
No, it assumes an all-cash purchase.
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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.