Cap Rate Calculator

Calculate capitalization rate, property value, or required NOI. The essential metric for comparing commercial real estate investments.


Low Cap Rates (3-5%)

Typically indicate prime locations, strong tenants, and lower perceived risk. Common in core urban markets with credit tenants on long-term leases.

Mid Cap Rates (5-8%)

Balance of risk and return. Common for stabilized retail assets in suburban markets with good tenant mix and solid fundamentals.

High Cap Rates (8%+)

Higher perceived risk but greater potential returns. May indicate value-add opportunities, secondary markets, or properties needing repositioning.