Enter the properties net operating income ($) and the property value ($) into the Cap Rate Calculator. The calculator will evaluate the Cap Rate.

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## Cap Rate Formula

The following two example problems outline the steps and information needed to calculate the Cap Rate.

**CR = NOI / MV**

- Where CR is the Cap Rate ( )
- NOI is the properties net operating income ($)
- MV is the property value ($)

## How to Calculate Cap Rate?

The following example problems outline how to calculate Cap Rate.

Example Problem #1:

- First, determine the properties net operating income ($).
- The properties net operating income ($) is given as: 5,000.

- Next, determine the property value ($).
- The property value ($) is provided as: 30,000.

- Finally, calculate the Cap Rate using the equation above:

CR = NOI / MV

The values provided above are inserted into the equation below and computed.

CR = 5,000 / 30,000 = .1667

Example Problem #2:** **

For this problem, the variables required are provided below:

properties net operating income ($) = 6,000

property value ($) = 20,000

Test your knowledge using the equation and check your answer with the calculator.

CR = NOI / MV** = ?**