What is a good Cap Rate?

It varies by market and risk, but 4-10% is common. Higher cap rates generally imply higher risk or lower appreciation potential.

Cap Rate Calculator

Calculate the Capitalization Rate (Cap Rate) to evaluate the profitability of an investment property independent of financing.

Capitalization Rate (Cap Rate) is the fundamental metric for commercial and residential investment property valuation.

It separates property performance from financing, allowing for apples-to-apples comparison of deals.

Net Operating Income: Income minus operating expenses.

NOI / Price. Higher is usually better for cash flow.

NOI / Market Cap Rate = Estimated Property Value.