Use our Cap Rate Calculator to measure property yield and investment returns. Instantly calculate capitalization rate and compare real estate deals.
Knowing your property’s return on investment is essential before you buy. The Cap Rate Calculator from REIF Loans helps investors evaluate how efficiently a property generates income relative to its market value.
Whether you’re comparing multifamily assets or analyzing rental opportunities, this tool delivers clear, instant insights into your property’s potential performance.
Cap rate, short for capitalization rate, measures the relationship between a property’s net operating income (NOI) and its purchase price or market value.
Cap Rate Formula:
Cap Rate (%) = (Net Operating Income / Property Value) × 100
Example:
If a property earns $50,000 in annual NOI and is valued at $625,000,
Cap Rate = (50,000 / 625,000) × 100 = 8%
Cap rate helps you:
Use this calculator to estimate your property’s capitalization rate (cap rate). Enter your Net Operating Income (NOI) and Property Value to calculate your yield percentage instantly.
Our Cap Rate Calculator computes your property’s yield based on income and expenses, helping you make smarter, faster decisions.
While both measure returns, they serve different purposes:
Cap Rate evaluates property performance based on value, ignoring financing.
Cash-on-Cash Return measures actual investor yield after financing and cash invested.
Understanding both gives you a full picture of potential returns and risk tolerance.
A Cap Rate Calculator simplifies investment analysis and supports informed decisions.
At REIF Loans, our calculator integrates financial precision with investor practicality 0 perfect for both beginners and seasoned professionals.
Cap rates vary depending on the location, property type, and market trends.
Understanding these variables helps you align investment strategy with long-term performance goals.
It depends on the market 0 typically 5%–10% for residential and 7%–12% for commercial.
Yes, use realistic rent projections backed by market data.
No. Cap rate measures property return before financing or taxes.
No. Cap rate focuses on property yield, while ROI includes financing, appreciation, and tax effects.
Yes, as income, expenses, and market values shift, your property’s cap rate adjusts.
Before you buy or refinance, evaluate your property’s profitability with our Cap Rate Calculator.
Compare deals, measure yield, and build your investment strategy with confidence.
