Cap Rate Calculator - Real Estate Capitalization Rate & NOI (2026)

Calculate Capitalization Rate (Cap Rate %) and Net Operating Income (NOI) for commercial and residential rental investment properties.

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⚙️ Configuration & Inputs
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📊 Results & Analysis
Property Capitalization Rate
7.11%
Net Operating Income: $32,000 / year
Property Value$450,000
Gross Rental Income$48,000
Operating Expenses$16,000
Net Operating Income (NOI)$32,000 / yr
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How Capitalization Rate Works

Cap Rate = (Net Operating Income ÷ Property Value) × 100

Cap rate measures the unleveraged rate of return on an investment real estate property, ignoring mortgage financing.

Frequently Asked Questions

Typically, 5% to 8% is considered a healthy cap rate in residential and multifamily commercial real estate.