Cap Rate Calculator
Expected yearly rent you enter
Taxes, insurance, maintenance, management, vacancy — excludes mortgage
Don't know the expected rent?
Get a market rent analysis for any U.S. address — comparable rentals, an expected range, and a recommended price.
Cash flow, returns, and a deal score against your purchase price.Cash flow, returns, and a deal score.
Optional. Anything you leave blank comes from the county record.
How this is calculated
Cap rate measures unlevered income yield — it ignores your mortgage:
NOI = Gross annual rent − Annual operating expenses
Cap rate = NOI ÷ Price × 100
Operating expenses include taxes, insurance, maintenance, management, and a vacancy allowance, but not loan payments. A higher cap rate means more income per dollar of price, though very high cap rates can signal higher risk or deferred costs.
Worked example
A $350,000 property renting for $28,800/yr with $10,000 in annual operating expenses has an NOI of $18,800. Cap rate = $18,800 ÷ $350,000 = 5.4%.
Frequently asked questions
Is a higher cap rate always better?
Not necessarily. Higher cap rates often come with higher risk, older properties, or weaker markets. Balance yield against quality and growth.
Does cap rate include my mortgage?
No. Cap rate is unlevered — it excludes financing so you can compare properties independent of how each is funded.
Where do I get the rent figure?
You enter it. For a data-backed market rent on a specific address, run the market rent analysis linked on this page.
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This calculator is for informational purposes only and uses the values you provide. It does not constitute financial, investment, tax, or legal advice, and should not be the sole basis for any investment or rental decision. Verify figures independently before acting.