Cap Rate Rechner — Formel

Understanding the Capitalization Rate

The cap rate measures the expected rate of return on a real estate investment based on its income-producing potential.

Formula

Cap Rate = (Net Operating Income / Property Value) x 100

Interpreting Results

  • A higher cap rate suggests higher potential returns but also higher perceived risk
  • A lower cap rate indicates a more stable, lower-risk investment
  • Typical residential cap rates range from 4% to 10% depending on location and property class

    • Lösungsbeispiel

    A rental property generates $36,000 per year in net operating income and is valued at $450,000.

    1. Identify the NOI: $36,000 per year
    2. Identify the market value: $450,000
    3. Cap Rate = $36,000 / $450,000 = 0.08
    4. Cap Rate = 8.00%
    5. At an 8% cap rate, implied value = $36,000 / 0.08 = $450,000
    6. At a 6% cap rate, implied value = $36,000 / 0.06 = $600,000