Free Tool
Cap Rate Calculator
Calculate capitalization rates instantly, or work backwards from your target cap rate to find the maximum purchase price.
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Annual net operating income
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Market Reference
Typical cap rate ranges by asset class (US, 2024-2025)
Class A Multifamily (Urban)4.0% - 5.5%
Class B Multifamily (Suburban)5.5% - 7.0%
Industrial (Core)4.5% - 6.0%
Retail (NNN)5.5% - 7.5%
Office (CBD)5.5% - 8.0%
Note: Cap rates vary significantly by location, quality, and market conditions.
How Cap Rate is Calculated
Cap Rate = (NOI ÷ Purchase Price) × 100
The capitalization rate represents the expected return on an investment property, expressed as a percentage of the purchase price.
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