Uncover a Good Cap Rate Using My Cap Rate Calculator

You may have an understanding that real estate is a solid investment choice. You may even be at the point where you have started looking!

[{"selector":"#anim-d69b5a8e-f397-4dea-a33b-5de9ec033b7d","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0688c4cf-533d-4fe7-962b-9201c5802b7e","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

If you don't evaluate your investment return, you could find yourself with a property that doesn't do anything for you. One of the easiest ways to evaluate an investment property is to calculate the cap rate.

[{"selector":"#anim-5cb00328-f6f4-4320-b9db-e376460d2bb9","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3c4bd56e-0ad7-48a7-878a-4e42a681fae5","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

What Is Cap Rate?

[{"selector":"#anim-614f61b1-6e80-40df-a5fb-c72a80826e5c","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f4b473a0-989d-49c8-bd30-65aafc03b536","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c6d74d12-ebf4-4012-ae3b-4bb78c5be824","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f4d573b0-7136-4fa9-908c-9e601deea9fc","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

How to Calculate a Cap Rate

[{"selector":"#anim-b0bd6f31-2f90-4264-9b68-35a762a318e2","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b5333dd6-3fd0-466b-bb02-6fae7f336ecd","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8f86369f-fcb8-4170-a8d5-78bc607c6255","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The originally intended cap rate formula is calculated in the following way: Annual Net Operating Income / (Cap Rate / 100) = Proposed Value of Property Learn more

My Cap Rate Calculator

[{"selector":"#anim-18ef36cc-0d99-492a-96a5-5e6d1101c26b","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa72de0f-1e81-44f1-b0fa-8dc53808a2b5","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-72c6b351-1611-4f18-a03f-ecb213a0ff04","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0db6295d-f3e6-40ac-a349-d90e723fe5e5","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

More on Annual Net Operating Income (NOI)

[{"selector":"#anim-a51dac59-90e7-4436-a530-c0a48b4fd000","keyframes":{"opacity":[0,1]},"delay":250,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-50c2883a-eaac-41d0-ad02-b1e3dff9919c","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ab278055-6472-4302-b156-e9e3edce8b61","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Your income will mostly be the rents from the property but could include other income, if you charge extra for parking or storage. The expenses will be anything that you need to pay related to the property. Learn more

Types of Leases

[{"selector":"#anim-57b9f101-4aa4-466e-b706-4db6370394d3","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e3f599e4-58d9-464b-9e88-20135aaba1a9","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f2737561-628d-48d7-b94f-aeddddabb69a","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-002c8266-c910-4a9a-ab49-c0327295b62d","keyframes":{"opacity":[0,1]},"delay":500,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

Swipe Up

[{"selector":"#anim-440cb124-2d7f-42e7-a70b-44fcef2f4dc1","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-05788cd8-26c1-46ce-8a1c-2765ef6080bc","keyframes":{"transform":["translate3d(0px, -289.76616%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7c9d729b-a1c6-4dba-8219-9fcfbd54965e","keyframes":{"opacity":[0,1]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4d2cf470-d214-4172-b8cb-93f78b66fbd6","keyframes":{"transform":["translate3d(0px, 181.56378%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Uncover a Good Cap Rate Using My Cap Rate Calculator

You may have an understanding that real estate is a solid investment choice. You may even be at the point where you have started looking!

If you don't evaluate your investment return, you could find yourself with a property that doesn't do anything for you. One of the easiest ways to evaluate an investment property is to calculate the cap rate.

What Is Cap Rate?

Technically the cap rate calculation is used to determine value. So you would determine what the “cap rates” of recently nearby sold properties were, and then use that number to establish what a good purchase price would be for a property.

How to Calculate a Cap Rate

My Cap Rate Calculator

This is a short course where I walk you through how real estate investment returns come together is my full investment calculator. The result of which is commonly referred to as the IRR or internal rate of return.

More on Annual Net Operating Income (NOI)

Types of Leases

1. Triple Net Lease (NNN) 2. Full Gross 3. Modified Gross Leases 4. Commercial vs. Residential

Swipe Up

for more finance, business, and real estate advice

Read More