Cap Rate Calculator
Compare a property's operating return before debt service. Enter the purchase price, annual rent, other income, vacancy allowance, and annual operating expenses to estimate effective gross income, NOI, cap rate, gross rent yield, and expense ratio.
Best for
Make the next pricing or planning decision with context
Set a price for the property scenario that covers the costs in this model and supports the target contribution you need. It covers cap rate from property price, rental income, vacancy, and operating expenses before financing.
Instant calculations · Editable fee assumptions · Export-ready results
Inputs
Values update results instantly. Adjust fee assumptions to match your seller dashboard.
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Property
Purchase price or value used for this comparison.
Income
Scheduled rent before vacancy.
Parking, storage, or other property income.
Editable allowance for vacancy or unpaid rent.
Operating costs
Property costs before mortgage debt service.
Results
Live estimates based on your inputs and editable fee assumptions.
Effective gross income
$29,640.00
Annual income after vacancy allowance.
Annual NOI
$17,640.00
Income after operating costs, before financing.
Cap rate
5.9%
NOI as a share of property price.
Gross rent yield
10.0%
Annual rent as a share of price.
Operating expense ratio
40.5%
Operating expenses as a share of effective income.
What this means
This scenario produces $17,640.00 of annual NOI and a 5.88% cap rate before financing. Operating expenses are 40.5% of effective income.
Cap rate operating view
Interactive breakdown of fees, costs, and remaining profit.
Distribution
- Vacancy allowance$1,560.005.0%
- Operating expenses$12,000.0038.5%
- NOI$17,640.0056.5%
Total $31,200.00 · 3 segments · interactive
Line-item breakdown
Dollar amounts, share of revenue, and visual proportion.
- Property price
- $300,000.00
- Gross scheduled income
- $31,200.00
- Vacancy allowance
- $1,560.00
- Effective gross income
- $29,640.00
- Operating expenses
- $12,000.00
- NOI
- $17,640.00
- Cap rate
- 5.9%
- Gross rent yield
- 10.0%
- Operating expense ratio
- 40.5%
Assumptions used
- • Vacancy 5.0% of $31,200.00 scheduled income
- • Operating expenses $12,000.00 before debt service
- • Cap rate excludes mortgage debt and financing terms
Your next best moves
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Explore Real Estate InvestingCap Rate Calculator
Generated 9/10/2026, 4:45:27 PM · Currency USD
Inputs
- Property price: 300000
- Annual rental income: 30000
- Other annual income: 1200
- Vacancy rate: 5
- Annual operating expenses: 12000
Results
- Property price: $300,000.00
- Gross scheduled income: $31,200.00
- Vacancy allowance: $1,560.00
- Effective gross income: $29,640.00
- Operating expenses: $12,000.00
- NOI: $17,640.00
- Cap rate: 5.9%
- Gross rent yield: 10.0%
- Operating expense ratio: 40.5%
Interpretation
This scenario produces $17,640.00 of annual NOI and a 5.88% cap rate before financing. Operating expenses are 40.5% of effective income.
How it works
Methodology & formulas
This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.
Calculation steps
- 1Gross scheduled income = annual rent + other annual income.
- 2Vacancy loss = gross scheduled income × vacancy rate ÷ 100.
- 3Effective gross income = gross scheduled income − vacancy loss.
- 4NOI = effective gross income − annual operating expenses.
- 5Cap rate = NOI ÷ property price × 100.
Formulas
- EGI = (annual rent + other income) × (1 − vacancy%)
- NOI = EGI − operating expenses
- Cap rate = NOI ÷ property price × 100
- Gross rent yield = annual rent ÷ property price × 100
- Expense ratio = operating expenses ÷ EGI × 100
Important assumptions
- Effective gross income equals annual rent plus other annual income after vacancy loss.
- Annual operating expenses are entered as one editable total and exclude mortgage debt service.
- Cap rate = NOI ÷ property price. It is a comparison estimate, not an appraisal or a required return.
- Gross rent yield uses annual rent only and does not subtract vacancy or expenses.
- Results are pre-tax educational estimates, not legal, tax, lending, appraisal, or investment advice.
Sources & review
Know what this estimate is built on
This calculator is intentionally platform-agnostic, so it does not attach a platform fee URL.
Official references
No single official fee page is attached here. The model keeps these inputs editable so you can use the terms that apply to your situation.
Use the current terms
This model uses editable planning assumptions. Confirm tax, payment, financing, or operating terms with the relevant provider, official authority, or adviser for your situation.
Defaults are editable estimates. Match them to your current account, provider statement, official authority, lender, or adviser before making a pricing or investment decision.
Calculator model reviewed: August 9, 2026. This date covers the page and calculator guidance, not a guarantee that every live platform rate or term was re-audited on that date.
Worked example
A simple income property comparison
$300,000 property price, $30,000 annual rent, $1,200 other income, 5% vacancy, and $12,000 annual operating expenses.
FAQ