RealPilot
Investing

What is this rental’s cap rate?

Enter the price, the monthly rent and the yearly operating costs. Cap rate compares properties before financing; for cash flow with a mortgage, use the rental ROI calculator.

Your numbers

Your estimate

CAP RATE
How this is estimated

What the calculator assumes.

Definitions. Net operating income is rent and other income after vacancy, minus operating expenses. Cap rate is net operating income divided by the price. Gross rent multiplier is the price divided by the gross yearly rent.

Left out. Mortgage payments, income tax and closing costs such as land transfer tax. See the rental ROI calculator for cash flow and cash-on-cash return.

Related

Other calculators you may need.