Use this cap rate calculator to efficiently determine the potential return on your real estate investment.

## Cap Rate Calculator

### How To Use The Calculator

To use the Cap Rate Calculator, simply enter the Net Operating Income (NOI) and the current Property Value into the respective fields and click the “Calculate” button. The result will display the capitalization rate, expressed as a percentage, which represents the return on investment for the property.

### How It Works

The calculator determines the capitalization rate by dividing the Net Operating Income (NOI) by the Property Value and then multiplying by 100 to get a percentage. The formula for Cap Rate is as follows:

`Cap Rate (%) = (Net Operating Income / Property Value) × 100`

Net Operating Income (NOI) is the annual income generated by the property after deducting all operating expenses. Property Value is the current worth or purchase price of the property.

### Limitations

Please note that this calculator provides an estimate based on the inputs you provide. The actual capitalization rate may vary based on additional factors not considered in this simple calculation, such as market changes, unexpected expenses, or variations in income. Always consult a professional financial advisor for a thorough analysis tailored to your specific investment property.