Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Cap rate
7.33%
Net operating income
$57,200
Effective gross income
$91,200
Value at your target cap rate
$817,143
Operating expense ratio
37.3%
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How to use this
- 1Enter gross annual income ($).
- 2Enter vacancy (%).
- 3Enter annual operating expenses ($).
- 4Enter property value ($).
- 5Enter target cap rate (%).
- 6Read your cap rate on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
Cap rate strips out financing so two properties can be compared on operating performance alone. It also works in reverse: divide NOI by a target cap rate to value a building.
Worked example
Using the values the calculator loads with:
Inputs
- Gross annual income: 96000 $
- Vacancy: 5 %
- Annual operating expenses: 34000 $
- Property value: 780000 $
- Target cap rate: 7 %
Results
- Cap rate: 7.33%
- Net operating income: $57,200.00
- Effective gross income: $91,200.00
- Value at your target cap rate: $817,142.86
- Operating expense ratio: 37.3%
What each field means
Inputs
- Gross annual income ($)
- The gross annual income used in the calculation, measured in $. Starts at 96000 $ so you have a working example on load.
- Vacancy (%)
- The vacancy used in the calculation, measured in %. Starts at 5 % so you have a working example on load. Accepted range: 0–50 %.
- Annual operating expenses ($)
- The annual operating expenses used in the calculation, measured in $. Starts at 34000 $ so you have a working example on load.
- Property value ($)
- The property value used in the calculation, measured in $. Starts at 780000 $ so you have a working example on load.
- Target cap rate (%)
- The target cap rate used in the calculation, measured in %. Starts at 7 % so you have a working example on load.
Results
- Cap rate
- Returned as a percentage and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Net operating income
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Effective gross income
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Value at your target cap rate
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Operating expense ratio
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the cap rate calculator work?
Cap rate strips out financing so two properties can be compared on operating performance alone. It also works in reverse: divide NOI by a target cap rate to value a building. The underlying maths is: Cap rate = Net operating income ÷ Property value. Value = NOI ÷ Cap rate.
What do I need to enter?
5 values: gross annual income, vacancy, annual operating expenses, property value, and target cap rate. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the cap rate result mean?
It is returned as a percentage and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Cap Rate Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/cap-rate
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/cap-rate" target="_blank" rel="noopener">Cap Rate Calculator — RevenueLab</a> (2026).</p>
Source: [Cap Rate Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/cap-rate) (2026).