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Cap Rate Calculator (From Gross Income)

Finance

Calculate a real estate propertys capitalization rate starting from gross income, vacancy rate, and operating expenses, useful when you have not yet worked out the propertys net operating income directly.

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USD
$1,000.00$100,000,000.00
USD
$0.00$10,000,000.00
%
0%100%
%
0%100%

Capitalization Rate

11.760

Your annual net income as a percentage of the propertys value

USD

Net Operating Income

$23,520.00

Income remaining after vacancy and operating expenses

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

What is a good cap rate?

It varies heavily by market and property type, but 4% to 10% is a common range, with lower cap rates typical in expensive, low-risk markets and higher rates in higher-risk or higher-yield markets.

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