Capitalization Rate Calculator

Typical cap rates range from 4–10%. Higher cap rates indicate higher returns but often higher risk or less desirable locations.

No. Cap rate is calculated before financing costs. It measures the property's intrinsic return independent of how it is financed.

Divide the NOI by the market cap rate to estimate property value. A $30,000 NOI at a 6% cap rate implies a $500,000 value.