Cap Rate Calculator

Commercial Cap Rate Calculator

Calculate the capitalization rate to evaluate the potential return on a commercial real estate investment.

Property value

USD

Annual gross income

USD

Operating expenses (percentage)

Operating expenses (total)

USD

Vacancy rate

Annual net income

USD

Cap Rate %

What is a Cap Rate?

The capitalization rate (Cap Rate) measures the expected rate of return on a real estate investment. It is calculated by dividing the Net Operating Income (NOI) by the property's current market value.

Cap Rate = NOI / Property Value × 100

NOI = (Gross Income − Operating Expenses) × (1 − Vacancy Rate)

A higher cap rate typically indicates higher potential returns but also higher risk. Most commercial properties in Oklahoma fall between 5% and 10%.