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What is the Capitalization Rate of this Property?

Cap Rate Calculator

— NOI · Cap Rate · Cash-on-Cash · Full Investment Analysis

How to Use This Calculator

This tool calculates the three core metrics every real estate investor needs: Cap Rate (property return independent of financing), Net Operating Income (NOI) (annual profit before debt service), and Cash-on-Cash Return (return on your actual cash invested). Works for residential rentals, multi-family, and commercial properties in both Canada and the US.

  1. Select currency and property type — Residential and commercial properties have different typical cap rate benchmarks.
  2. Enter income — Include all rental income, parking, laundry, storage, and any other revenue streams. Set your vacancy rate to reflect realistic occupancy.
  3. Enter expenses — Use the expense sliders or enter individual line items. The expense ratio slider is a quick way to estimate if you don't have exact numbers.
  4. Enter financing details — Down payment, rate, and term to calculate cash-on-cash return and monthly cash flow.
  5. Review the dashboard — Cap rate, NOI, cash-on-cash, monthly cash flow, and a full P&L breakdown.
Cap Rate > 8% = Excellent
6–8% = Good
4–6% = Fair (major markets)
< 4% = Poor / speculative
Cash-on-Cash > 8% = Strong
5–8% = Acceptable
3–5% = Marginal
< 3% = Below market
NOI = Gross Income − Vacancy − Expenses
Cap Rate = NOI ÷ Purchase Price
CoC = Annual Cash Flow ÷ Cash Invested
Currency
Property Type
Property Details
Purchase Price $600,000
Closing Costs $15,000
Annual Rental Income
Monthly Rent / Unit Revenue $2,800
Number of Units 1
Vacancy Rate 5%
Other Annual Income $0
Parking, laundry, storage, etc.
Annual Operating Expenses
Property Tax (Annual) $5,000
Insurance (Annual) $2,000
Property Management $0
Maintenance & Repairs $3,000
Utilities (Landlord Paid) $0
Other Expenses $0
HOA, accounting, advertising, etc.
Financing (for Cash-on-Cash)
Down Payment $150,000
Mortgage Rate 5.5%
Amortization 25 years
📈
Enter property details and click Analyze
Your full investment dashboard will appear here

Legal Disclaimer
Illustrative Purposes Only: This calculator and the data provided (including regional benchmarks from CREA and CMHC) are intended for educational and illustrative purposes only. The results are estimates based on user inputs and market averages and do not constitute financial, legal, or investment advice.

No Guarantees: While we strive to maintain the most accurate and up-to-date information, InvestorMetrics does not guarantee the accuracy, completeness, or reliability of any calculations or data displayed. Real estate markets, interest rates, and tax laws are subject to frequent changes.

User Responsibility: Investment involves risk. Users are responsible for performing their own due diligence and should consult with a qualified mortgage broker, real estate lawyer, or financial advisor before making any financial decisions. InvestorMetrics and its affiliates are not liable for any losses or damages arising from the use of or reliance on this tool.

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