Calculators
Cap rate is the fastest way to compare two income properties on equal footing — pure return on the property itself, before financing enters the picture.
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9.84%
Cap rate
$1,050,000
Max price at a 7.5% cap rate
These calculators provide estimates for educational purposes only — they are not an appraisal, a loan quote, or tax advice. Real underwriting, valuation, and 1031 exchange outcomes depend on your specific deal, lender, and a qualified intermediary/CPA — treat these as a starting point for a conversation, not a final number.
Want a real read on a specific deal? Talk to me directly.
Frequently Asked
Not automatically — a higher cap rate often means higher perceived risk (weaker location, shorter leases, older building), while a lower cap rate usually reflects a more stable, in-demand asset. Cap rate is a starting comparison point, not a verdict.
By design — cap rate measures the property's return independent of financing, which is exactly what makes it useful for comparing two different properties. Cash-on-cash return is the number that factors in your actual loan.