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Cap rate calculator

Capitalization rate = annual net operating income ÷ property value × 100.

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Answer

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Capitalization rate = annual net operating income ÷ property value × 100.

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Precision and calculation record
Rounding changes displayed numbers, not the calculation. Text, fractions, matrices and CSV schedules keep their own formatting. Automatic keeps up to 12 significant digits, with money shown to cents where applicable.
Step-by-step calculation
Inputs are substituted below. Each line evaluates the next operation; intermediate values are displayed to 12 significant digits while the calculation uses full precision.
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    Formula and assumptions
    Net operating income excludes financing costs and income taxes under this definition. This is a ratio from your inputs, not an appraisal.
    Automatic precision shows numbers to 12 significant digits. Thousands separators such as 1,000 are accepted; use a dot for decimals.
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    Updated 
    Using Cap rate calculator
    Capitalization rate = annual net operating income ÷ property value × 100.
    Net operating income excludes financing costs and income taxes under this definition. This is a ratio from your inputs, not an appraisal.
    Next: Net operating income calculator
    A worked example
    With annual net operating income = 20000, property value = 400000, the capitalization rate (%) is 5.
    Next: Cash on cash return calculator
    Before you use the result
    Net operating income excludes financing costs and income taxes under this definition. This is a ratio from your inputs, not an appraisal.
    Example results for annual net operating income
    These examples use Property value: 400000. They are reference calculations, not recommended settings.
    Annual net operating incomeCapitalization rate (%)
    100002.5
    200005
    4000010
    Cite this page
    ToolOctopus. “Cap rate calculator.” Updated 2026-09-26. https://tooloctopus.com/cap-rate-calculator.
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