Cap Rate Calculator
Determine unleveraged real estate investment yield, Net Operating Income (NOI), and property value sensitivity across institutional market capitalization rates.
Purchase Price & Income
Annual Operating Expenses (OpEx)
Cap Rate & Return Metrics
Unleveraged property cash flow yield
Capitalization Rate Mathematical Architecture
Cap Rate Equation
Cap rate ignores mortgage debt financing and income taxes to measure the intrinsic, unleveraged earning power of real estate assets.
Market Cap Rate vs. Property Value
Cap rate has an inverse relationship with property valuation: as market risk or interest rates rise, cap rates expand and property asset values contract.
Related Financial Tools
Interconnected calculations to validate your business economics
Cash on Cash Return Calculator
Measure annual pre-tax cash flow yield on actual equity invested, debt service amortization, and positive leverage.
Commercial Real Estate Lease Calculator
Model square footage base rent, Triple Net (NNN) operating expenses, CAM charges, and multi-year lease escalations.
DSCR Commercial Loan Calculator
Verify Debt Service Coverage Ratios for commercial financing and SBA debt underwriting.
Equity Multiple (MOIC) Calculator
Calculate Multiple on Invested Capital (MOIC), total cash distributions returned, and annualized holding returns.