💰 Business & Financial Ratios

Free Cap Rate Calculator

Where,

  • NOI (Net Operating Income) = Annual Gross Income – Operating Expenses – Vacancy Loss
  • Property Value = Total investment value of the property

Example:

If Property Value = $200,000, Annual Gross Income = $30,000, Operating Expenses = $5,000, and Vacancy Loss = $0:

NOI = 30,000 – 5,000 – 0 = 25,000

Cap Rate = (25,000 ÷ 200,000) × 100 = 12.5%