Free calculator
Cap rate calculator
Estimate a property’s capitalization rate — net operating income divided by price — to compare rentals on a consistent basis, before any mortgage. The result is based on your own numbers.
The short answer
Last updated: July 2026
A capitalization rate (cap rate) is a property’s annual net operating income divided by its price or value, expressed as a percent. A $350,000 property with $22,200 of NOI has about a 6.3% cap rate. It measures unleveraged yield before financing, so it’s useful for comparing deals — higher generally means more income per dollar.
After the estimate:
Self-management softwareCap rate calculator
The property's cap rate and NOI.
Enter the price, annual rent, and annual operating expenses to estimate the capitalization rate — the return the property earns, before any mortgage.
Purchase price
$
Annual rental income
$
Gross rent collected in a year (monthly rent × 12).
Annual operating expenses (excl. mortgage)
$
Taxes, insurance, management, repairs, vacancy — everything but loan payments.
Input-driven result
Your inputs
Formula
Result below
Cap rate
6.3%
NOI $22,200/yr ÷ $350,000 price. Cap rate ignores the mortgage.
Net operating income (NOI)
$22,200
Annual income $31,200 − operating expenses $9,000.
Annual NOI composition
Rental income
$31,200
Operating expenses
-$9,000
Net operating income
$22,200
Estimate based on your inputs. Not a promise of results.
Estimate only. Cap rate measures the property on its own — it excludes financing, closing costs, appreciation, and taxes. It's most useful for comparing deals on a consistent basis.
How it works
How this tool works.
Cap rate is the number investors reach for first, because it measures the property on its own — what it earns relative to its price, before financing muddies the picture. It’s how you line up two very different deals and compare them fairly.
Enter the purchase price, annual rental income, and annual operating expenses, and this calculator estimates the cap rate along with the net operating income (NOI) it’s built from. It’s arithmetic on the figures you provide — an illustration to compare deals, not a valuation or a prediction of returns.
Make the result useful
Cap-rate underwriting
Price is the property value or purchase denominator.
NOI is income after recurring operating expenses but before loan debt service.
Effective income should reflect a defensible vacancy and concession assumption.
Capital projects and financing should be modeled separately from recurring NOI.
Calculation lens
cap rate = annual NOI ÷ price
Use the output as a documented scenario result, not a guarantee.
Does not show borrower cash flow, loan terms, or value changes.
Questions landlords ask
Questions about this tool and its limits.
Built by a landlord who's done every one of these jobs by hand.
Aptoria was built by an owner-operator managing a Brooklyn portfolio — the 11pm calls, the awkward rent texts, the April receipt-pile — not by a software team guessing at the problem.
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