KLOORACap Rate Calculator
Calculate the capitalization rate of a rental property from price, rent and operating costs.
Quick answer: Cap Rate Calculator: Calculate the capitalization rate of a rental property from price, rent and operating costs. Everything runs in your browser, so nothing you enter is uploaded or stored.
How to use Cap Rate Calculator
- Enter your values in the fields.
- The results update instantly as you type.
- Note or copy the numbers you need.
Features
- Instant results
- Free, no signup
- Runs in your browser, nothing is uploaded
- Works on phone and desktop
How it works
Cap rate = net operating income / purchase price. Net operating income is rent after vacancy minus operating costs, before the mortgage.
Worked example
Rent of 2,600 a month with 5 percent vacancy and 9,000 of costs gives an NOI of 20,640, a cap rate of 5.9 percent on 350,000.
Frequently asked questions
What is cap rate?
Net operating income divided by the property price, a quick way to compare investment properties.
What is a good cap rate?
Many investors look for 5 to 10 percent, depending on the market and risk.
Is the Cap Rate Calculator free?
Yes. It is free, needs no signup and works on any device.