Finance & Economics / Real Estate Investment

Cap Rate Calculator

Annual Rental Income ($)

Annual Operating Expenses ($)

Include: property tax, insurance, maintenance, property management, utilities, HOA fees

Property Purchase Price or Value ($)

10%+: Excellent return, but may indicate higher risk or area

7-10%: Good investment in most markets

5-7%: Fair, typical for stable/appreciating areas

<5%: Below average, may rely on appreciation

Formula: Cap Rate = (NOI / Property Value) × 100

See Also