Cap Rate Calculator

Capitalization rate (cap rate) is the ratio of net operating income (NOI) to property value, expressed as a percentage. It measures the expected rate of return on a real estate investment, independent of financing.

Good cap rates vary by property type and location. Residential properties typically range 4-8%, commercial 5-10%, and industrial 6-12%. Higher cap rates indicate higher potential returns but also higher risk.

NOI = Gross Rental Income minus Operating Expenses (property taxes, insurance, maintenance, management fees, vacancy allowance). It does not include mortgage payments or depreciation.

Using the Cap Rate Calculator is simple: visit the tool page, enter your data or input into the provided fields, and get instant results. Follow the controls on the page. Some functions require sign-in or a paid plan; see Pricing for limits.

The Free plan includes 10 tool uses per day. Some features require an account or a paid plan. Check the controls on the tool page and Pricing for the applicable limits.

The Cap Rate Calculator returns results based on the inputs and the tool methodology. Check assumptions, units and source dates. Treat projections as estimates. For critical decisions, always consult a qualified professional.

Yes, the Cap Rate Calculator is fully responsive and works perfectly on smartphones, tablets, and desktop computers. Simply open NexTool in your mobile browser and navigate to the tool — no app download required.