# Cap Rate Calculator

Cap rate is the measure used to find the rate of return of the investor on a real estate investment property based on the expected income or profit on the property. In this cap rate calculator, the capitalization rate for real estate is calculated based on the net operating income and value.

## Capitalization Rate for Real Estate

%

Cap rate is the measure used to find the rate of return of the investor on a real estate investment property based on the expected income or profit on the property. In this cap rate calculator, the capitalization rate for real estate is calculated based on the net operating income and value.

Code to add this calci to your website  #### Formula:

CR = (NOI / V) Where, CR = Capitalization Rate NOI = Net Operating Income V = Value or Cost

Generally, the cap rate is the ratio of the net operating income of the real estate property and the current market value of the product or original price of the property.

### Example

#### Capitalization Rate for Real Estate

If the net operating income is 25000 \$ and Market value is 120000 \$, then the return rate (capitalization rate) is
CR = 18000 / 120000
CR = 15 %