# Cap Rate Calculator

> Cap rate calculator: compute the capitalization rate on a rental property from property value and net operating income for unlevered yield. Free, no signup.

- **Canonical URL:** https://boringtoolskit.com/cap-rate-calculator/
- **Category:** Finance & Investing
- **Evidence level:** authored-methodology
- **Reviewed:** July 26, 2026
- **Last verified:** 2026-10-12
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

Cap rate = net operating income / property value x 100.

## Worked example

A $300,000 property producing $24,000 of annual net operating income has an 8.00% cap rate.

## Assumptions

- NOI is annual, after operating expenses but before debt service.
- Property value is the price or appraised value used at purchase.

## Common questions

### What is a good cap rate?

Most markets trade between 4% for prime assets and 10%+ for risky ones; compare within the same market and asset type.

### Does cap rate include the mortgage?

No. Cap rate is an unleveraged measure: NOI divided by property value, ignoring financing entirely.

## Related tools

- /mortgage-payment-calc/
- /cash-on-cash-return/
- /rental-property-roi/

## Sources

- [Calculation methodology](/methodology/)
- [Quality evidence and verification standard](/quality-evidence/)

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*Local planning estimate. Verify current terms, rates, and policies before acting.*