Big plans start with your numbers.
Estimate your monthly mortgage payment, understand your debt ratios, and compare the long-term impact of your choices.
Cap Rate Calculator
Operating expenses should include taxes, insurance, maintenance, management and vacancy, but not mortgage payments.
About this calculator
Calculate a property's capitalization rate from its net operating income.
Cap rate measures a property's return without regard to how it is financed, so you can compare one property with another on equal footing. It is a standard quick-compare number in investment real estate.
Enter the purchase price or current value, gross yearly rental income, and yearly operating expenses such as taxes, insurance, maintenance, management and vacancy, but not the mortgage. The calculator finds net operating income and divides it by price. A higher cap rate usually means more income for the price, often with more risk, so compare similar properties.
You don’t have to figure this out alone.
Tell us what you’re working toward. We’ll help you understand your next step.