Cap Rate Calculator

Calculate capitalization rate from annual net operating income and property value.

Enter your values, then select the button.
Cap Rate Calculator method
(Income - operating expenses) ÷ property value.

How to use the cap rate calculator

  1. Annual gross income: Rent and recurring property income.
  2. Annual operating expenses: Operating costs excluding financing and income tax.
  3. Property value: Purchase price or current market value.
  4. Select the button and review the result.

Worked example

32,000 NOI on a 400,000 property is an 8% cap rate.

Method and limitations

(Income - operating expenses) ÷ property value.

Financing, capital expenditure, vacancy assumptions, and tax treatment require separate analysis.

Common questions

Why might another result be different?

Inputs, rounding, policies, rates, and assumptions can differ. Compare like-for-like values and use current official information when a rate or rule can change.

Does NidXee save my entries?

No. The calculation runs in your browser. Reloading or closing the page may clear it.