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Cap Rate Calculator

Finance & Investment

NOI ÷ price, vacancy and property returns

Quick Answer

Cap Rate Calculator: NOI ÷ price, vacancy and property returns. Cap Rate Calculator uses standard finance formulas to compute accurate results instantly.

Capitalization rate

1.78%

NOI ¥53,400/yr · gross yield 2.40%

Gross rent/yr¥72,000
Effective rent¥68,400
NOI¥53,400
Fair price @5%¥107万

Cap rate zones (China residential context)

Overpriced
Typical tier-1
Reasonable
Attractive
Deep value/risk

Cap 1.78%

Steps

  1. 1Gross annual rent = ¥6,000 × 12 = ¥72,000
  2. 2Effective = gross × (1 − 5%) = ¥68,400
  3. 3NOI = ¥68,400 − ¥15,000 = ¥53,400
  4. 4Cap = NOI ÷ ¥3.00M = 1.78%
  5. 5Reverse: at 4%/5%/6% cap the property is worth ¥1.33M/¥1.07M/¥0.89M

💡 Cap rate = NOI ÷ price, independent of financing — it measures the property itself. China tier-1 residential runs 1.5-2.5% (below mortgage cost, so investors bet on appreciation); US multifamily trades at 4-6%. Rule: when cap rate < loan rate, leverage amplifies losses, not gains ("negative leverage").

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How to Use

  1. Enter amounts and terms: fill principal, rate and period in the Cap Rate Calculator (defaults work for a quick try).
  2. Instant results: key figures and cost breakdown update live as you type.
  3. Compare scenarios: tweak any parameter to compare costs and returns across plans.
  4. Copy key numbers: one-click copy for records or sharing with your advisor.

Key Points

  • Cap Rate Calculator is a free online finance tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: NOI ÷ price, vacancy and property returns.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Cap Rate Calculator formula

Cap Rate Calculator uses standard finance formulas to compute accurate results instantly.

FAQ

How do I use the Cap Rate Calculator?
Open the page and fill in the input fields — results update automatically. NOI ÷ price, vacancy and property returns.
Are the results accurate?
Yes. Standard financial formulas and published rate data are used. For official figures, consult your financial institution.
Is it free? Do I need to sign up?
Completely free. No registration, login or download required.
Can I use the results for financial decisions?
Results are for reference. Consult a licensed financial advisor before major decisions.
Does it work on mobile?
Yes. Fully responsive on phones, tablets and desktops.

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Source & Updates

Based on published rate tables and standard financial formulas. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. Cap Rate Calculator[EB/OL]. https://www.yijiansuan.com/en/c/finance/cap-rate

Results provided by this tool are for reference only and do not constitute professional advice.