Cap Rate Calculator
Calculate the capitalization rate of an investment property from its net operating income and value.
Everything except mortgage payments and income tax.
- Annual gross income
- £0
- Annual expenses
- £0
Cap rate = NOI ÷ property value. NOI excludes mortgage payments and income tax. A higher cap rate implies higher income relative to price (and often higher risk).
The capitalization (cap) rate is a property's net operating income (NOI) as a percentage of its value. It's a quick way to compare income properties independent of financing.
Frequently asked questions
They're closely related. Cap rate uses net operating income (after expenses), while 'gross yield' uses rent before costs. Net yield and cap rate are effectively the same idea.
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