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Cap Rate Calculator

Calculate cap rate from NOI, compare markets, and see As-Is vs Pro Forma side by side.

📍 Analyzing a specific property? Enter address — optional
✓ Saved
InputsShared — both columns
Property Value
Purchase Price (As-Is)?
$
After Repair Value (Pro Forma)?
$
Income
Current Monthly Rent?
$
Pro Forma Monthly Rent?
$
Other Monthly Income
$
Operating Expenses (monthly)
Vacancy %?
%
PF Vacancy %
%
Property Tax/mo
$
Insurance/mo
$
Maintenance %?
%
Mgmt Fee %
%
HOA/mo
$
As-Is TodayCurrent condition
Enter property value and rent to see results
Cap Rate
—
target: 5–7%+
Annual NOI
—
net operating income
Monthly NOI
—
before debt service
GRM
—
gross rent multiplier
NOI Build-Up
Gross Annual Rent—
Vacancy Loss—
Effective Gross Income—
Annual Operating Expenses—
Net Operating Income (NOI)—
Cap Rate Interpretation
Cap Rate—
Implied Property Value—at market 6% cap
Price per $1 of NOI—
Expense Ratio—
Market Benchmarks
National SFR avg (2026)7.3%
Midwest avg5.8%
Sun Belt avg4.8%
West Coast avg3.4%
Pro Forma — After PlanPost renovation / rent increase
Enter pro forma rent to see results
Cap Rate (on ARV)
—
vs As-Is
Annual NOI
—
vs As-Is
Monthly NOI
—
before debt service
GRM (on ARV)
—
vs As-Is
NOI Build-Up
Gross Annual Rent—
Vacancy Loss—
Effective Gross Income—
Annual Operating Expenses—
Net Operating Income (NOI)—
Cap Rate Analysis
Cap Rate on ARV—
NOI Improvement—
Value Created (at 6% cap)—
Expense Ratio—
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Cap Rate Formula

Cap Rate = NOI ÷ Property Value × 100. Uses purchase price for As-Is, ARV for Pro Forma.

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NOI Excludes Debt

NOI does NOT include mortgage payments — it's a property-level metric independent of financing.

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ARV Field

Leave blank to use purchase price. Enter estimated value after renovation for the Pro Forma column.

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Market Comparison

Use the benchmark table to see how your deal compares to Midwest, Sun Belt, and West Coast averages.

Cap Rate (Capitalization Rate) is the most widely used metric for comparing real estate investments at a glance. It measures the property's annual return if purchased with all cash — stripping out financing so you can compare deals apples-to-apples.

Interpreting cap rates: Below 4% = appreciation play (low cash flow, high value market). 4–6% = balanced. 6%+ = cash flow focus. Above 9% often signals higher risk or distressed asset.

Cap rate vs cash-on-cash: Cap rate ignores financing. Cash-on-cash measures actual returns on your down payment after the mortgage. Use both — they tell different parts of the story.