Cap Rate Calculator
The capitalization rate of a property: net operating income ÷ price.
Result
Cap rate (%)
10.00
Monthly net income
250,000
How it works
Cap rate = NOI ÷ price × 100
The cap rate measures a property’s yield ignoring financing. It uses net operating income (rent minus running costs), so it is stricter than gross rental yield.
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Frequently asked questions
What is a good cap rate?
Often 5–10%, but it depends heavily on the city, risk and property type.
Cap rate vs rental yield?
Cap rate uses net income (after costs); gross yield uses rent only, so cap rate is lower and more realistic.
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