Free tool
Cap rate calculator
Estimate the return on a rental property before financing.
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How it works
How it works
NOI = rental income after vacancy minus operating expenses (leave out mortgage payments). Cap rate = NOI divided by purchase price.
FAQ
About this calculator
What is a good cap rate?
It depends on the market, property type and risk. Compare with similar properties in the same area.
What counts as an operating expense?
Property tax, insurance, maintenance, management and utilities you pay. Mortgage payments and income tax are not operating expenses.
Does cap rate include financing?
No. It looks at the property alone. Cash-on-cash return accounts for the loan.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: rental yield and gross rent multiplier calculator, cash on cash return calculator. See all free tools. More free tools: Free Excel templates, Rental yield and gross rent multiplier calculator, Mortgage payment calculator, or see all free tools.
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General information, not tax or legal advice. How we write and check our tools.
Excel workbook
Rental Property Deal Analyzer
Enter the price, financing, rent and expenses and see cash flow, cap rate, cash-on-cash return and coverage, with best, expected and worst cases side by side.
Also in the Landlord Bundle: 3 products for $69 instead of $82 separately.