Rental Property Cap Rate
Free online Rental Property Cap Rate. Calculate the capitalisation rate of any rental property. Cap rate equals Net…
Calculate the capitalisation rate of any rental property. Cap rate equals Net Operating Income divided by property value — the standard metric for comparing investment properties.
📐 Formula Used
FV = PV × (1 + r)^nFV = PV(1+r)^n + PMT × [(1+r)^n - 1] / rCAGR = (FV/PV)^(1/n) - 1When and Why to Use This Calculator
Use this rental property calculator when evaluating investment properties, comparing deals, or assessing the financial performance of your existing rental portfolio.
Worked Example
A property worth $400,000 generating $28,000 NOI: cap rate is 7%. In a 5% cap rate market, this property is attractively priced. Cap rates vary significantly by market and property type.
How to Use This Calculator
- Step 1 — Enter your values into the fields above.
- Step 2 — Press Calculate to see your result instantly.
- Step 3 — Review the formula to understand how the result was reached.
- Step 4 — Use Copy Result to copy your answer, or Reset to start over.
No sign-up required. The Rental Property Cap Rate is completely free on any device.