CAP RATE CALCULATOR (SIMPLE)
1. Total cost to acquire this property*
Purchase price + closing costs + upfront repairs.
$
2. Gross annual rental income*
Assuming 100% occupancy, not including expenses.
$
3. Vacancy rate*
Percentage of the year the property sits unoccupied. Typical: 5-10%.
%
4. Annual operating expenses*
Taxes + insurance + utilities + maintenance + management + HOA + other (NOT mortgage payments).
$
Where Does Your Cap Rate Come From?
Gross rental income shrinks at each step — first by vacancy, then by operating expenses — leaving NOI. NOI ÷ purchase price = cap rate, so the height of that final bar is what drives your return.
Fill in Total Cost to Acquire and Gross Rental Income to see the income breakdown.