About the Cap Rate Calculator
Capitalization rate from net operating income and property value — or the value implied by a target cap rate.
Also known as: capitalization rate, cap rate formula, noi to value.
How to use this calculator
- Enter net operating income (annual), property value / price.
- The result updates instantly as you type — press Calculate (or Enter) at any time.
- Review the breakdown shown under the main result.
- Use Copy result or Share to save the answer or send a link with your inputs.
Formula
Cap rate = NOI ÷ property value
Worked example
Using the values pre-filled in the calculator above:
- Net operating income (annual) = 24,000
- Property value / price = 400,000
the calculator returns:
- Cap rate: 6%
- Value at 6% cap rate: 400,000