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ReturnLab
Compare rental properties on an apples-to-apples basis, independent of how each one is financed.
Cap rate is calculated on the full property value, not your down payment or loan balance — that's deliberate, so you can compare an all-cash deal against a leveraged one on equal footing.
It depends heavily on location and risk: stable markets often see 4-6% cap rates, while higher-risk markets can offer 8-10%+ to compensate for that added risk.
Estimate monthly payments with taxes, insurance, and amortization.
OpenProperty price, down payment, tenure — EMI, processing fee, and stamp duty & registration.
OpenCompare loan terms and see total interest paid.
OpenProject growth from deposits and compounding interest.
OpenCap rate
6%
What you entered
Divide net operating income by property value
$24,000.00 ÷ $400,000.00= 6.00%Result
Cap rate: 6%
A property earning $24,000/year in NOI at a $400,000 valuation has a 6% cap rate — a quick, financing-independent way to compare rental properties.