Cap Rate Calculator
Calculate capitalization rates, estimate property values, or determine required NOI based on your inputs.
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Cap Rate
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NOI ÷ Property Value
Understanding Cap Rates
The capitalization rate (cap rate) is a fundamental metric in real estate investing. It represents the ratio of a property's net operating income to its current market value, expressed as a percentage.
The Formula
Cap Rate = NOI ÷ Property Value × 100
Typical Cap Rate Ranges
Class A Multifamily 4.5% – 5.5%
Class B Multifamily 5.5% – 6.5%
Industrial / Warehouse 5.0% – 6.5%
Retail (NNN) 5.5% – 7.0%
Office (Class A) 6.0% – 8.0%
Note: Cap rates vary significantly by market, property quality, tenant credit, lease term, and current interest rate environment. These ranges are approximate national averages.