Cap Rate Calculator

The capitalisation rate is a property's net operating income divided by its value, and it is how income real estate is compared before financing enters the picture. Enter the rent, the vacancy allowance, the operating expenses and the price, and it returns net operating income, the cap rate, the expense ratio and the monthly income. A second mode runs it backwards: give it a net operating income and a target cap rate and it returns the value that rate supports. Operating expenses here mean taxes, insurance, maintenance, management, owner-paid utilities and HOA dues, while mortgage payments, income tax and depreciation are deliberately left out.