All tools

Cap Rate Calculator

Instantly evaluate any property's capitalization rate. Enter rent, vacancy, and expenses — and get cap rate, NOI, gross yield, and more.

Property Details

$
$
%
Operating Expenses
%
Typical range: 35–50%. Includes taxes, insurance, maintenance, and management.
Cap Rate
4.79%
Average cap rate for a rental property
Annual NOI Breakdown
cap rate4.79%
NOI
$23,940.00
Expenses (40%)
$15,960.00
Vacancy (5%)
$2,100.00
Gross Annual Rent$42,000.00
Vacancy Loss (5%)−$2,100.00
Gross Operating Income$39,900.00
Operating Expenses (40% of GOI)−$15,960.00
Net Operating Income$23,940.00
Additional Metrics
Gross Yield8.40%Annual rent ÷ property value
Price-to-Rent11.9xLower = better for investors
Annual NOI$23,940.00Net operating income
Monthly NOI$1,995.00Before debt service
Cap Rate Benchmarks
≥ 8%High return, higher risk market
6–8%Strong — typical investor target
4–6%Average — urban/suburban market
< 4%Low — premium or gateway market

Want to track all your property finances in one place?

PropCFO gives you per-property P&L, journal entries, AI receipt scanning, and Schedule E export — built for real estate investors.

Start your free 14-day trial →