Capitalization Rate
Enter the property value and annual net operating income (NOI).
Cap rate
0%
NOI: $0
Net operating income (NOI)
$0
Gross rent multiplier
0
Operating expense ratio
0%
Payback period
0 yrs
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Property value ($) | $500,000 |
| Annual rental income ($) | $60,000 |
| Annual operating expenses ($) | $15,000 |
| Result | Value |
|---|---|
| Cap rate | 9.00% |
| Net operating income (NOI) | $45,000/yr |
| Gross rent multiplier | 8.3x |
| Operating expense ratio | 25.0% |
| Payback period | 11.1 yrs |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Capitalization Rate
- Property value ($) — default $500,000
- Annual rental income ($) — default $60,000
- Annual operating expenses ($) — default $15,000
- Press Calculate to update the results instantly.