How this calculator works
Cap rate = net operating income ÷ price. It is financing-blind, which makes it ideal for comparing properties. Higher cap = higher yield, usually with higher risk.
Loans this applies to
Investment property
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
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Investment propertyInvestment Property Loans
An investment property loan finances a 1-4 unit rental you do not live in.
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FAQ
Is the Cap Rate Calculator free?
Yes. It is free, needs no sign-up and does not check your credit.
How accurate is the Cap Rate Calculator?
It uses the same formulas lenders use, but results are estimates. Your actual terms come from your Loan Estimate or term sheet.
Estimates only, for educational use. Not a loan offer or commitment to lend.