Calculator

Cap Rate Calculator

Capitalization rate measures unleveraged annual yield — the standard screening metric for commercial and multi-family investments.

Inputs

Property value

Annual gross income

Annual operating expenses

Exclude mortgage payments.

Investment Intelligence

Investment Score

Grade B

/ 100

Strong

Investment Score

OpportunityStrong Opportunity

Risk LevelLow

Investment GradeB — Strong

Recommended Actions

→Healthy cap rate — pair with conservative financing to lock in the spread.
→Compare against neighborhood cap-rate benchmarks before bidding.
→Stress-test NOI for a 10% rent decline and 15% tax hike.

Property Analysis

Good

Cap Rate

7.50%

NOI

$30,000

Property Grade

Income / Value

10.50%

Healthy market-rate return for most U.S. metros.

Generate Premium Investment Report

Executive summary, Investment Score, ROI analysis, cash flow projection, risk assessment, sensitivity analysis, market commentary, and recommended actions — exportable as PDF.

Free to generate. No signup required.

When cap rate matters most

Cap rate is the standard yield metric for commercial and multi-family properties. Because it ignores financing, it isolates a property's intrinsic income performance. For more, read our complete cap rate guide.