Calculator Inputs and Outputs
Inputs
- Annual gross rental income — example: 36000
- Annual operating expenses — example: 12000
- Property value — example: 420000
Results
- Capitalization rate
- Net operating income
Formula used
Cap rate = annual net operating income ÷ property value × 100.
How to Use the Rental Property Cap Rate Calculator
Enter the requested values, confirm the units and assumptions, then select Calculate Rental Property Cap Rate. The default values form a complete working example, while supporting outputs provide context for the primary answer.
Formula
Cap rate = annual net operating income ÷ property value × 100.
Understanding the Results
The main result appears first. Additional values show useful conversions, intermediate quantities, costs, dates, or comparisons. Calculations retain additional precision before display rounding.
Accuracy Tips
- Use measured values and consistent units.
- Review every assumption before using an estimate.
- Include realistic waste, fees, timing, efficiency, or contingency inputs where available.
Important Note
This calculator is for informational estimation. Verify critical financial, health, construction, scientific, tax, legal, or safety decisions with an appropriately qualified professional.
Calculation Standards
This tool uses documented formulas and high-precision internal values. Displayed results may be rounded for readability. Review the assumptions and verify important decisions with a qualified professional.
Read our calculation methodology