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Cap Rate Calculator

Estimate a property's capitalization rate based on its Net Operating Income and purchase price or market value.

  1. 1Enter detailsAdd your numbers
  2. 2Review costsSee the breakdown
  3. 3See resultsYour estimate updates live

Your details

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Estimated cap rate

4.09%

$40,740Effective income
  • Operating expenses — $8,000
  • Net Operating Income — $32,740

Breakdown (annual)

Gross income$42,000
Effective income$40,740
Operating expenses−$8,000
Net Operating Income$32,740
Property value$800,000

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Calculations provided by this tool are estimates for general informational and educational purposes only and should not be relied upon as financial, mortgage, tax, accounting, investment or legal advice. Actual mortgage payments, qualification requirements, taxes, rebates, closing costs, commissions, rental amounts and other expenses may vary based on the property, lender, municipality, transaction and individual circumstances. Government programs, tax rates, mortgage rules and regulatory requirements may change without notice. Users should confirm all figures and eligibility requirements with the appropriate lender, mortgage professional, lawyer, accountant, municipality, government authority or other qualified professional before making a financial or real estate decision. Kaitlynn Martins and RE/MAX Your Community Realty Inc., Brokerage do not guarantee the accuracy or completeness of calculations generated by this tool.