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Cap Rate Calculator
Evaluate profitability of a rental property.
/year
Live Calculation
Cap Rate
6.00
%
Live Step-by-Step Calculation
# Given Values:
Net Operating Income: 24000 /year
Property Value: 400000
# Formula:
Cap Rate = (noi / price) * 100
Cap Rate = (noi / price) * 100
# Substitution:
Cap Rate = (24000 / 400000) * 100
Cap Rate = (24000 / 400000) * 100
Final Answer: 6 %
How it Works
AI Insight
Did you know? Consistent tracking of these metrics can help identify trends over time. Try adjusting the inputs to see how sensitive the result is to each variable.
Next Steps
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