Cap rate calculator

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Estimate NOI, cap rate, and a target value from a few core property assumptions.

Exclude mortgage principal and interest; cap rate uses NOI before financing.

All required fields must be filled in.

Cap Rate

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Enter rent, expenses, vacancy, property value, and a target cap rate to estimate NOI and yield.

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Example calculations

Tap an example to prefill the calculator with sample values.

Small rental baseline

$36k rent, $9k expenses, $350k value

A simple hold property where cap rate is being compared against a market benchmark.

Result: A high-7% cap rate clears a 6% target fairly comfortably if the rent and expense assumptions hold.

Conservative market

Lower vacancy and a 5.25% target

Useful when you are checking how much value a lower-yielding market might justify.

Result: Reverse-solving value helps show what price still fits the target return band.

Expense-heavy property

Higher opex on a lower-value deal

Good for seeing how quickly weak NOI compresses yield even when the purchase price looks cheaper at first glance.

Result: The cap rate can look thinner than expected once vacancy and operating drag are included.

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