Calculate the cap rate for any investment property using net operating income and property value. Compare multiple properties side by side, view benchmarks by property type, and evaluate investment returns.
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Capitalization rate (cap rate) is the ratio of net operating income (NOI) to property value, expressed as a percentage. It measures the expected rate of return on a real estate investment, independent of financing.
Good cap rates vary by property type and location. Residential properties typically range 4-8%, commercial 5-10%, and industrial 6-12%. Higher cap rates indicate higher potential returns but also higher risk.
NOI = Gross Rental Income minus Operating Expenses (property taxes, insurance, maintenance, management fees, vacancy allowance). It does not include mortgage payments or depreciation.
Using the Cap Rate Calculator is simple: visit the tool page, enter your data or input into the provided fields, and get instant results. No downloads, installations, or sign-ups are required. The tool runs directly in your web browser for maximum convenience.
Yes, the Cap Rate Calculator is 100% free to use with no limitations. There is no registration required, no daily usage caps, and no hidden fees. You can use it as many times as you need.
The Cap Rate Calculator uses industry-standard formulas and algorithms to deliver reliable results. While the tool is designed for accuracy, results should be used as estimates and guidance. For critical decisions, always consult a qualified professional.
Yes, after running your calculation you can copy the results to your clipboard or take a screenshot. The Cap Rate Calculator displays a detailed breakdown so you can easily record or share your numbers. No account is required to use or save results.
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Calculate the cap rate for any investment property using net operating income and property value. Compare multiple properties side by side, view benchmarks by property type, and evaluate investment returns.
NexTool's Cap Rate Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.
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| Property Type | Low | Typical | High | Range |
|---|---|---|---|---|
Single-Family Residential | 4% | 6% | 8% | |
Multi-Family Residential | 5% | 7% | 9% | |
Retail / Commercial | 5% | 7.5% | 10% | |
Office Space | 5.5% | 7.5% | 10% | |
Industrial / Warehouse | 6% | 8.5% | 12% | |
Mixed-Use | 5% | 7% | 9.5% |
| Purchase Price | Cap Rate | Monthly NOI | GRM |
|---|---|---|---|
| $200,000(-20%) | 7.19% | $1,198.00 | 8.33x |
| $225,000(-10%) | 6.39% | $1,198.00 | 9.38x |
| $237,500(-5%) | 6.05% | $1,198.00 | 9.90x |
| $250,000Current | 5.75% | $1,198.00 | 10.42x |
| $262,500(+5%) | 5.48% | $1,198.00 | 10.94x |
| $275,000(+10%) | 5.23% | $1,198.00 | 11.46x |
| $300,000(+20%) | 4.79% | $1,198.00 | 12.50x |