Does it include the mortgage?
No. Cap rate compares properties as if bought with cash.
Cap Rate Calculator
The yearly return on a rental.
Cap rate
0%- Net income
- $0
How it’s calculated
- Net income = rent − running costs
- Cap rate = net income ÷ price
Example: $36,000 of rent, $12,000 of costs and a $400,000 price is a 6% cap rate.
About the Cap Rate Calculator
A property’s capitalization rate from its income, costs and price.
How to use this tool
- Enter the year’s rent.
- Enter running costs, without the mortgage.
- Enter the price.