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Cap Rate Calculator (Real Estate)

Capitalization rate = NOI / Purchase Price. Quick yield comparison for rental properties. Typical 2026 US cap rates: 4-6% prime, 6-10% mid-market, 10%+ value-add.

FINANCE

Capitalization rate = NOI / Purchase Price. Quick yield comparison for rental properties. Typical 2026 US cap rates: 4-6% prime, 6-10% mid-market, 10%+ value-add.

Detailed instructions, formula notes, and US-context guidance shown in the calculator above.

Disclaimer: Estimate only. Consult a qualified professional for decisions with major financial, legal, or health consequences.

Cap Rate Calculator

Cap Rate = Net Operating Income / Purchase Price. Quick yield comparison for rental properties (ignores financing). Higher = better yield but typically more risk.

Excl. mortgage. Typical 35-50% (50% rule of thumb).
Cap Rate
5.13%
Gross Annual Rent$36,000
Effective Gross (after vacancy)$34,200
Operating Expenses$13,680
Net Operating Income (NOI)$20,520

2026 typical: 4-6% prime/Class A, 6-10% mid-market, 10%+ value-add/distressed. Lower-cap markets (SF, NYC) reward appreciation; higher-cap markets (Detroit, Memphis) reward cash flow.

Frequently Asked Questions

What is the Cap Rate Calculator (Real Estate) for?
Capitalization rate = NOI / Purchase Price. Quick yield comparison for rental properties. Typical 2026 US cap rates: 4-6% prime, 6-10% mid-market, 10%+ value-add.
How do I use the Cap Rate Calculator (Real Estate)?
Detailed instructions, formula notes, and US-context guidance shown in the calculator above.
How accurate are my cap rate (real estate) results?
Estimate only. Consult a qualified professional for decisions with major financial, legal, or health consequences.
Is the Cap Rate Calculator (Real Estate) free to use?
Yes - every calculator on WhichCalc is completely free with no signup, no usage limits, and no tracking on the calculation itself. Results display instantly in your browser and your inputs are never sent to a server. Bookmark the page if you use this calculator regularly.