Real Estate Cap Rate Calculator
The capitalization rate (cap rate) is a measure of a real estate investment's profitability and potential return.
Property Value:Enter the purchase price or current market value of the property.
Annual Gross Income:This is the total rental income you expect to receive in a year, including other income sources like parking or laundry fees.
Annual Operating Expenses:Include all costs to operate the property, such as property taxes, insurance, maintenance, property management fees, and utilities. Do not include mortgage payments.
Vacancy Rate (%):Estimate the percentage of time the property will be vacant. This accounts for the potential loss of rental income.
The cap rate is a useful comparison tool but should be used with other financial metrics. A "good" cap rate can vary significantly by location and property type. This is not financial advice.
Evaluate the profitability of an investment property.