Cap rate calculator

Cap rate tells you how much a rental earns compared with its price, as if you paid cash. Enter the price, rent and yearly operating costs to see net operating income and cap rate. It's free and there's no sign-up.

The property

Operating costs are property tax, insurance, HOA, repairs, management and any utilities you pay. Don't include the mortgage. The starting numbers are only an example.

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What the numbers mean

Net operating income (NOI)
Yearly rent after vacancy, minus operating costs. It leaves out the mortgage, so you can compare properties no matter how they're financed.
Cap rate
NOI divided by the price. A higher cap rate means more income for each dollar of price, often with more risk or work.
What's a good cap rate?
It depends on the area, the property and interest rates. Compare it with similar rentals nearby and with what your money could earn elsewhere.

These are estimates from the numbers you enter, not financial, tax or lending advice. Need the full picture with the mortgage? Try the rental property calculator or the cash-on-cash calculator.