Cap Rate Calculator

Cap rate ignores financing entirely — it answers "how would this property perform if I paid all cash," which makes it the cleanest way to compare properties with different loan terms.

NOI excludes the mortgage payment itself but includes operating costs like tax, insurance, maintenance, and management — leaving out any of those inflates the cap rate artificially.

Cap rate benchmarks vary enormously by metro and asset class; treat the mark on this page as a generic starting point, not a target that applies everywhere.