Cap Rate Calculator
Calculate the capitalization rate for a rental investment property.
Assumptions used in this calculation
- NOI excludes financing: Net operating income is calculated before any mortgage payment, the standard convention for comparing properties independent of how they're financed.
- Rental income assumed effective: Annual rental income entered is treated as already accounting for expected vacancy. If you're entering gross potential rent, reduce it first or add a vacancy allowance to operating expenses.
About this calculator
The cap rate calculator finds the capitalization rate, net operating income divided by property value, a standard metric investors use to compare rental properties independent of financing.
Worked example
₹60L property, ₹4.8L rental income, ₹96,000 expenses
Result: Cap rate = 6.4%
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