FullCalculator

Investment Property Calculator

Cap Rate & NOI

Calculate capitalization rate and net operating income

$
$
%
$

Full Deal Analysis

Complete investment property analysis with financing

$
%
$
$

Formula

Cap Rate = (NOI / Property Price) x 100

Frequently Asked Questions

What is a good cap rate?
Cap rates between 5-10% are generally considered good, but this varies by market and property type. Higher cap rates indicate higher potential returns but may also signal higher risk. Urban properties often have lower cap rates (3-5%) than rural ones (8-12%).
What is Net Operating Income (NOI)?
NOI is the annual income from a property after deducting all operating expenses (taxes, insurance, maintenance, management) but before mortgage payments. NOI = Effective Gross Income - Operating Expenses.
What is the 1% rule in real estate?
The 1% rule states that monthly rent should be at least 1% of the property purchase price. For a $300,000 property, rent should be at least $3,000/month. It is a quick screening tool, not a definitive analysis.

You may also need