MossMeter tool
Cap Rate Calculator
Estimate a property’s cap rate from its annual net operating income and price. Enter both amounts in the same currency; the result updates as you type.
Property figures
Enter both amounts in the same currency. Currency symbols are omitted.
Enter the property's value or purchase price.
Enter the property price.
Enter annual income after operating expenses; cap rate compares it with property value and excludes financing costs.
Enter the annual NOI.
Cap rate
Cap rate uses annual net operating income (NOI) after operating expenses and the property price: divide NOI by price and multiply by 100.
Cap rate excludes financing, which can help investors compare property operations. It does not show an investor’s debt-specific return; this estimate is general information, not personalized financial advice.
Choosing a Rental Property Return MetricCalculation
Property price is the amount paid to buy the property. Annual net operating income (NOI) is the property’s income for one year after operating expenses.
Annual NOI may be zero, but cannot be negative. Property price must be greater than zero.
Cap rate (%) = (annual NOI ÷ property price) × 100Illustrative example
For a property price of 200,000 and annual NOI of 12,000:
(12,000 ÷ 200,000) × 100 = 6.00%