The Cap Rate or Capitalization Rate formula is straightforward. The calculation is done by dividing the net operating income by the asset’s current market value and percentage.

Nov 8, 2025 · In the most popular formula, the capitalization rate of a real estate investment is calculated by dividing the property's net operating income (NOI) by the current market value. Mathematically,...

Learn the capitalization rate (cap rate)—its formula, calculation, and role in valuing real estate investments, risk assessment, and return potential.

The cap rate calculator can be used to accurately calculate the capitalization rate of real estate. In the real estate lending and appraisal sector, the cap rate is a valuable metric that uses the amount of …

Definition: This calculator computes the Capitalization Rate (C) for a real estate investment, measuring the annual return based on net rental income (N) relative to property value (V).

Instantly compute cap rate, cash flow, ROI, GRM and DSCR for any property. Free, mobile-friendly tool trusted by 10k+ investors—no sign-up.

Mar 10, 2025 · Learn the cap rate formula and how to calculate cap rate with this comprehensive, step-by-step guide. Ideal for real estate investors looking to evaluate property profitability.