Finance
Cap Rate Calculator
Calculate the capitalization rate for a real estate investment property based on its income and value.
Disclaimer: This calculator provides estimates for informational and educational purposes only. It is not a substitute for professional financial advice, tax planning, or investment guidance. Always consult a qualified financial advisor for decisions affecting your finances. Results depend on the accuracy of inputs provided.
FAQ
Frequently asked questions
What is Cap Rate?
Capitalization rate (cap rate) is a measure used in real estate to estimate the rate of return on an investment property, calculated as Net Operating Income divided by Property Value.
What is a good Cap Rate?
It varies by market, but typically a cap rate between 4% and 10% is considered standard depending on the asset class and location risk.