Cap Rate Calculator
Enter rental income, expenses, and property value to calculate cap rate and NOI.
The capitalization rate (cap rate) is the most widely used metric for evaluating rental property investments. This calculator computes net operating income (NOI), cap rate, and gross rent multiplier from your property's income, vacancy rate, expenses, and current value.
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Last reviewed: April 2026Report an error
Taxes, insurance, maintenance, management
Cap Rate
6.55%
NOI: $26,200/yr ÷ $400,000 = 6.55% cap rate. Acceptable. Gross Rent Multiplier: 11.1×.
Effective Gross Income
$34,200/yr
Net Operating Income
$26,200/yr
Cap Rate
6.55%
Gross Rent Multiplier
11.1×
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How to Use This Cap Rate Calculator
- Enter annual gross rental income.
- Enter vacancy rate (typically 5–10%).
- Enter annual operating expenses (property tax, insurance, maintenance, management).
- Enter current property value or purchase price.
- Read cap rate, NOI, and gross rent multiplier.
Frequently Asked Questions
- Depends on market and property type. 4–6% is typical in expensive urban markets; 6–10%+ in smaller markets. Higher cap rate = higher return but often higher risk.
- Property tax, insurance, maintenance, property management fees, utilities (landlord-paid), and reserves. Mortgage payments are NOT included in NOI.
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