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Calcimator

Cap Rate Calculator

Calculate capitalization rate (cap rate) for real estate investments. See NOI, property value, and gross rent multiplier.

Inputs

$
$
$
$

Results

Net Operating Income

$24,000.00

Cap Rate

8%

Property Value (from Cap Rate)$300,000.00
Gross Rent Multiplier8.33
How to Use This Calculator
  1. Enter Annual Rent (e.g. $36,000) and Operating Expenses (e.g. $12,000) to calculate Net Operating Income.
  2. Enter Property Value (e.g. $300,000) — the purchase price or current market value.
  3. Read the Cap Rate output as a percentage; higher cap rates indicate stronger returns relative to price.
  4. Review the Gross Rent Multiplier (GRM) to compare properties quickly — lower GRM typically means better value.
  5. Use the 'Property Value from Cap Rate' output to determine what you should pay given the market cap rate.
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Formula

Cap Rate = (Net Operating Income / Property Value) × 100

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