Cap rate calculator
Compute a property's unlevered yield in seconds. Plug in annual rent, expenses, and price.
$
All rent collected over a year, before any expenses.
$
Taxes, insurance, maintenance, property mgmt, vacancy reserve. NOT mortgage.
$
6.50%
Typical residential rental range.
What is cap rate?
Cap rate is the property's net operating income (gross rent minus operating expenses) divided by its purchase price. It tells you the unlevered return — what the property yields if you bought it cash, ignoring financing — and it's the cleanest apples-to-apples way to compare two properties before mortgage math is in the picture.
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