Capitalization Rate Calculator

$
Enter annual net operating income in $.
$
Enter property value in $.
Finance

Calculate capitalization rate from the figures you enter.

Formula

Result = Annual net operating income / Property value × 100

Example Calculation

Example inputs
  • Annual net operating income: 15000 $
  • Property value: 300000 $

Annual net operating income 15000 divided by property value 300000 gives 5%.

Frequently asked questions

How do I use this calculator?

Enter annual net operating income, property value. The result updates automatically. Use Reset to restore the example values.

What method does it use?

Result = Annual net operating income / Property value × 100. Use comparable figures from the same reporting period. No current market data is retrieved.

Why might a rounded result differ?

The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.

Are my inputs saved online?

No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.

Check the assumptions and units before using this result. Read about calculation methods.