Calculate the cap rate for any investment property using net operating income and property value. Compare multiple properties side by side, view benchmarks by property type, and evaluate investment returns.
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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. No downloads, installations, or sign-ups are required. The tool runs directly in your web browser for maximum convenience.
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The Cap Rate Calculator uses industry-standard formulas and algorithms to deliver reliable results. While the tool is designed for accuracy, results should be used as estimates and guidance. 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.
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Calculate the cap rate for any investment property using net operating income and property value. Compare multiple properties side by side, view benchmarks by property type, and evaluate investment returns.
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| Property Type | Low | Typical | High | Range |
|---|---|---|---|---|
Single-Family Residential | 4% | 6% | 8% | |
Multi-Family Residential | 5% | 7% | 9% | |
Retail / Commercial | 5% | 7.5% | 10% | |
Office Space | 5.5% | 7.5% | 10% | |
Industrial / Warehouse | 6% | 8.5% | 12% | |
Mixed-Use | 5% | 7% | 9.5% |
| Purchase Price | Cap Rate | Monthly NOI | GRM |
|---|---|---|---|
| $200,000(-20%) | 7.19% | $1,198.00 | 8.33x |
| $225,000(-10%) | 6.39% | $1,198.00 | 9.38x |
| $237,500(-5%) | 6.05% | $1,198.00 | 9.90x |
| $250,000Current | 5.75% | $1,198.00 | 10.42x |
| $262,500(+5%) | 5.48% | $1,198.00 | 10.94x |
| $275,000(+10%) | 5.23% | $1,198.00 | 11.46x |
| $300,000(+20%) | 4.79% | $1,198.00 | 12.50x |