Nov 8, 2025 · The capitalization rate (also known as cap rate) is used in the world of commercial real estate to indicate the rate of return that is expected to be generated on a real estate …

The cap rate calculator determines the rate of return on your real estate property purchase.

Cap rate is important because it can provide a look at the initial yield of an investment property. The formula puts net operating income in relation to the investment’s purchase price, which …

Sep 18, 2025 · A cap rate, or capitalization rate, is a critical metric used in commercial real estate to evaluate the potential return on investment for an income-producing property.

Feb 12, 2025 · Key Points A cap rate helps determine if a real estate investment is worth pursuing. The cap rate formula involves dividing a property's net operating income (NOI) by its …

The cap rate reflects your investment property's rate of return as measured by the amount of income you expect the property to produce. This measurement can be more simply described …

Jan 9, 2025 · Calculated by dividing a property’s net operating income by its asset value, the cap rate is an assessment of the yield of a property over one year. For example, a property worth …

What is Capitalization Rate (Cap Rate)? Capitalization rate (or Cap Rate for short) is commonly used in real estate and refers to the rate of return on a property based on the net operating …

What is a Cap Rate? The capitalization rate, or cap rate, represents the expected return on an investment property, expressed as a percentage. It is used by investors to compare different …

Nov 5, 2025 · What is a cap rate? Definition, formula, examples and why it matters in multifamily investing. Investor takeaways from Origin Investments.