Calculate Your Cap Rate Instantly
Your Comprehensive Real Estate Tool
Calculate Cap Rate
Enter your property's financial details to instantly calculate its Net Operating Income (NOI) and Capitalization Rate.
What It Does & How It Works
This tool helps you quickly assess a property's profitability by calculating the **Net Operating Income (NOI)** and the **Capitalization Rate (Cap Rate)**.
Formulas Used:
- **Net Operating Income (NOI)** = Annual Rental Income – Expenses – Hidden Costs (if any)
- **Cap Rate** = (NOI ÷ Property Value) × 100%
The optional **hidden cost** field helps capture real-world overlooked costs like property management fees, emergency repairs, or VAT on services—pain points often ignored in standard tools.
Why This Tool Works (And Fixes What Others Don’t)
Hidden costs undercut returns
**How this tool helps:** Allows entry of hidden costs as a percentage of revenue to provide a more realistic calculation.
Unrealistic high cap rates seem risky
**How this tool helps:** The color-coded output and chart signal low (red), average (orange), or strong (green) cap rates to give you a quick visual cue.
Hard to benchmark different markets
**How this tool helps:** NOI and cap rate are displayed clearly for rapid comparison between different properties or markets.
User Guide & SEO-Friendly FAQs
How to calculate cap rate?
Enter your rental income, operating expenses, and property value. Hit "Calculate Cap Rate" to automatically compute NOI and cap rate instantly.
What is a good cap rate?
Typically, 5–8% balances return and stability. Under 5% may reflect overvalued markets or low-risk assets. Above 8% could indicate outlying risk factors.
How does this calculator handle overlooked costs?
Use the hidden costs field if your property incurs fees or maintenance costs not included in base expenses—this creates a more accurate NOI.
Why include Cap Rate in investment decisions?
Cap Rate offers a quick return snapshot, useful for comparing different properties on how much income they generate relative to their value.