Cap Rate from NOI and Price Calculator

Calculate capitalization rate from net operating income and purchase price. Cap Rate = NOI / Property Value. Essential for comparing real estate investments across markets.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Calculate capitalization rate from net operating income and purchase price. Cap Rate = NOI / Property Value. Essential for comparing real estate investments across markets

Each component has a specific meaning:

  • Net operating income — The net operating income recorded for the scenario being assessed.
  • Purchase price — The purchase price recorded for the scenario being assessed.

Note: Interpret the cap rate calculator result against the thresholds and context described above.

How to Use

Enter the net operating income, purchase price for the scenario you are assessing. Calculate capitalization rate from net operating income and purchase price. Cap Rate = NOI / Property Value. Essential for comparing real estate investments across markets. Use the cap rate calculator result to inform your calculation.

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Frequently Asked Questions