Free calculator
Cap rate calculator
Work out real estate cap rate (capitalization rate) from net operating income (NOI) and value or price, or solve for implied value or implied NOI in one place. The headline formula is NOI ÷ value (expressed as %). Unlevered—it ignores mortgage and most owner taxes. Not a company cap table, not an appraisal, not a loan offer—illustration only.
When to use this calculator
Fast unlevered checks and comparables math before you drop numbers into a pro forma workbook.
- Get going-in cap when you have NOI and a price in the same currency for rental or CRE (simple single-year snapshot).
- Reverse to implied value when the market speaks in cap terms (NOI ÷ cap).
- Preview stabilized NOI for a given ask and cap—then refine line items in the NOI calculator or your model.
- Use mortgage and ROI tools when the question is leverage or equity return—cap stays debt-free on purpose.
We use the common U.S. style for income property: unlevered return = net operating income divided by value or price—on an annual basis in one currency.
What is the cap rate?
Cap rate % = (NOI ÷ V) × 100, with V a stabilized value or purchase price in the same units as NOI (usually a one-year view).
Solving for value (reverse)
From V = NOI ÷ (cap as a decimal). Example: if NOI = 120,000 and the cap is 6%, then 0.06 in the denominator and V = 2,000,000 before fees in your head terms.
What is left out (on purpose)
Debt service, owner income taxes, and levered cash on cash—those live in mortgage, TVM, and ROI flows, not the unlevered cap readout on this page.
To roll up gross to EGI and NOI with vacancy and line item detail, use the NOI calculator first; then return here to read or reverse on a stabilized result.
For mortgage payments and the ROI calculator when the question is levered or trading return—not unlevered cap.
Google Sheets & Excel
English function names. Put NOI in N2 and value in V2; treat rate in formulas as a decimal (e.g. 6% = 0.06).
=N2/V2Format the cell as %; N2 and V2 must be same currency and annual NOI.
=N2/0.06Replace 0.06 with your rate; 0.05 = 5%.
=V2*0.060.06 = 6%—keep value and NOI annual in one currency.
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Frequently asked questions
What is a cap rate in real estate?
It is usually the unlevered return of operating income on a value: net operating income (NOI) ÷ price (or value), often shown as a %. The same idea is the taux de capitalisation (FR) and Kapitalisierungsrate (DE) in the income property sense—not a start-up cap table.
What is the exact formula you use here?
We show % = (NOI ÷ V) × 100; V in dollars and NOI as dollars per year; V = NOI / (cap% / 100) when you imply value; NOI = V × (cap% / 100) when you imply income.
What is a good cap rate?
It varies by market, location, and property type—5% could be rich in one place and thin in another. Use comps in your submarket; this page is arithmetic only, not a benchmark service.
Is cap rate the same as cash-on-cash or yield with a mortgage?
No—cap is unlevered (debt excluded). Cash on cash divides post-debt cash by your equity outlay. Use the mortgage and related tools when the dollar is levered in your head.
Is cap rate the same as ROI?
Not the stock-style one-round-trip ROI on the 10XSheets ROI tool—cap is a return to unlevered value in one convention for income property; you may also reconcile in a tighter model when you add and remove items in NOI.
What about cap rate with a mortgage in the name?
Our headline is unlevered—so P&I and DSCR do not go in the top-line cap here; the mortgage payment calculator helps the levered view on a separate page you own the debt on in your pro forma.
Is this a capitalization table (cap table) for startups?
No—cap table in ventures tracks shares and ownership; that is separate terminology from real estate cap rate.
I need gross rent, vacancy, and opex. Where do I go?
Start with the NOI calculator to turn your gross income into EGI and NOI with line-item-style inputs; then you can type the stabilized NOI into this page to stress or reverse on a value and rate only.
How do I do this in Google Sheets or Excel?
Use a cell for NOI and a cell for V; =NOI_cell/V_cell formatted as %; or =NOI_cell/(cap_cell) when cap is a decimal; =V_cell*cap_dec for implied income.
Is this for underwriting or a loan offer?
No to all of that—lenders and appraisers have checklists; this is a fast free arithmetic helper with your assumptions you type in.