Cap Rate Calculator
Turn rent and operating expenses into a property’s net operating income and cap rate. Adjust any input to instantly see how it moves your yield — no financing required.
Your numbers
- Cap rate
- 3.51%
- Annual NOI
- $17,571
- Gross yield
- 5.76%
- Gross rent multiplier
- 17.4
- Effective gross income
- $27,360
- Operating expenses
- $9,789
Frequently asked questions
What is a cap rate?
The capitalization rate is a property’s annual net operating income (NOI) divided by its value or purchase price. It expresses the unlevered yield of the asset — what it earns before any mortgage — so you can compare properties on equal terms.
What is a good cap rate for a rental property?
It varies by market and property type. In stable residential markets like Central Oregon, single-family rentals often trade at lower cap rates than riskier assets because appreciation and demand are strong. Compare a property’s cap rate to similar local listings rather than a national rule of thumb.
Why doesn’t the cap rate include my mortgage?
By design. Cap rate measures the property itself, independent of how you finance it, so two buyers with different loans can still compare the same asset. To factor in financing, use the cash-on-cash return in our ROI calculator.
What is the gross rent multiplier (GRM)?
GRM is the property price divided by its annual gross rent. It’s a quick screening ratio — a lower GRM suggests more rent per dollar of price — but unlike cap rate it ignores operating expenses.
Want the numbers for your actual property?
These calculators use your assumptions. For a real estimate grounded in current Central Oregon lease data — Bend, Redmond, Sisters, Prineville, and beyond — request a free, no-obligation rental analysis.
More free tools
- ROI Calculator — Model monthly cash flow, cap rate, and cash-on-cash return on a rental purchase.
- Rent vs Sell — Compare selling now and reinvesting against renting your property and selling later.