Free Real Estate Calculator
Cap Rate Calculator
Calculate capitalization rate, property value, or NOI for real estate investments. Essential tool for evaluating rental property returns.
Last updated: January 2025
Example Cap Rate Calculations
| Property Value | Annual NOI | Cap Rate | Monthly NOI |
|---|---|---|---|
| $250,000 | $20,000 | 8.0% | $1,667 |
| $500,000 | $35,000 | 7.0% | $2,917 |
| $750,000 | $45,000 | 6.0% | $3,750 |
| $1,000,000 | $55,000 | 5.5% | $4,583 |
| $1,500,000 | $90,000 | 6.0% | $7,500 |
| $2,000,000 | $140,000 | 7.0% | $11,667 |
Average Cap Rates by Market (2025)
| Market | Multifamily | Office | Retail |
|---|---|---|---|
| San Francisco, CA | 3.5-4.5% | 5.0-6.0% | 4.5-5.5% |
| New York, NY | 3.5-4.5% | 4.5-5.5% | 4.0-5.0% |
| Austin, TX | 4.5-5.5% | 6.0-7.0% | 5.5-6.5% |
| Phoenix, AZ | 5.0-6.0% | 6.5-7.5% | 6.0-7.0% |
| Dallas, TX | 5.0-6.0% | 6.5-7.5% | 5.5-6.5% |
* Rates are approximate and vary by specific location, property class, and market conditions.
Cap Rate Formulas
Calculate Cap Rate
Cap Rate = (NOI / Property Value) × 100
Example: $50,000 NOI ÷ $500,000 = 10% Cap Rate
Calculate Property Value
Property Value = NOI / (Cap Rate / 100)
Example: $50,000 NOI ÷ 0.10 = $500,000
Calculate Required NOI
NOI = Property Value × (Cap Rate / 100)
Example: $500,000 × 0.10 = $50,000
Calculate NOI
NOI = Gross Income - Operating Expenses
Example: $80,000 Rent - $30,000 Expenses = $50,000
Frequently Asked Questions
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