Cap Rate Calculator
The cap rate calculator helps you quickly evaluate the return potential of any investment property by comparing its net operating income to its purchase price.
Why Calculate Your Cap Rate?
Cap rate is the most widely used metric for comparing rental properties at a glance. It strips out financing variables and focuses purely on how hard the property itself is working for you. Whether you're evaluating a duplex in Ohio or a multi-family in California, cap rate gives you an apples-to-apples comparison. A property with a 7% cap rate generates $7 in net income for every $100 of property value — useful for setting benchmarks across your portfolio and spotting underperformers. Hoozzee helps you track actual income and expenses across every property, so your cap rate calculations always reflect real numbers instead of estimates.
How to use a Cap Rate calculator?
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Enter the property purchase price or current market value.
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Enter total annual gross rental income from all units.
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Add annual operating expenses including property taxes, insurance, maintenance, and management fees.
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The calculator instantly shows your Net Operating Income (NOI) and Cap Rate percentage.
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Use the interpretation guide to understand where your property falls on the risk-return spectrum.