Real Estate
Cap Rate Calculator
The yield a property earns regardless of how you finance it — the cleanest way to compare deals.
Inputs
- Net operating income (annual)
- Purchase price
How to use this calculator
- Enter the property's annual net operating income and its purchase price.
- The cap rate is NOI divided by price, which is the unlevered yield.
- Compare it across properties: a higher cap rate is more income per dollar, but often more risk.
What each term means
- Cap rate
- Net operating income divided by price: the property's yield ignoring financing.
- NOI (net operating income)
- Rental income minus operating expenses, before the mortgage.
- Unlevered yield
- Return assuming you paid all cash, with no loan.
Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.