Real Estate & Mortgage
Cap Rate
Calculate a property's capitalization rate from net operating income and purchase price.
Your inputs
Change any value to update the result instantly.
Cap rate
6%
NOI
90,000
Purchase price
15,00,000
Value at 6% cap rate
15,00,000
Formula and working
Cap Rate = Net Operating Income ÷ Purchase Price
- 1
Collect the inputs
Annual NOI = 90,000; Purchase price = 1,500,000
- 2
Apply the formula
Cap Rate = Net Operating Income ÷ Purchase Price
- 3
Result
Cap rate = 6 %
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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