How do you calculate a cap rate?

You can calculate the capitalization rate of a property by dividing the property's net operating income (NOI) by the current property value. Determine your property's NOI by subtracting your operating expenses from your total annual income. Calculate your property's cap rate with our free cap rate formula calculator.

How do you find average cap rates by zip code?

In general, it's not possible to find average cap rates by zip code. This is because cap rates depend on a number of factors, such as expenses and home value, and these fluctuate over time and depend on your individual situation. Calculate the cap rate for your investment property using this free cap rate calculator.

Luke Williams

Contributing Writer

Luke has been covering both residential and commercial real estate in a professional capacity for 10+ years, highlighting market movements, important deals, lending trends, and more.

His passion for providing data-based guidance to homebuyers and commercial real estate investors drives his writing. It's easy to get caught up in the noise of news headlines, but he believes that accurate, unbiased information is key to making the most informed real estate decisions possible.

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