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Cap Rate Calculator
Calculate a property’s capitalization rate to compare investment properties.
How this calculator works
Enter the property value, the yearly income and the yearly expenses. The cap rate is net operating income divided by the value.
Example
A $500,000 property earning $60,000 a year with $24,000 in expenses has a cap rate of 7.20%.
Tips
- Do not include mortgage payments in the expenses.
- Compare cap rates only between similar properties in similar areas.
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Results are estimates only. See our disclaimer.