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Cap Rate Calculator

Calculate Capitalization Rate for real estate. Evaluate rental property profitability and ROI.

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Applications

Essential for real estate investors to evaluate the profitability of income-producing properties and compare different investment opportunities.

The Formula

Cap Rate = (Net Operating Income / Current Market Value) × 100%. It measures the annual return on investment, excluding financing costs.

Fun Fact: A 'good' cap rate depends on the location and asset class. In stable markets, 4-6% might be common, while riskier areas may require 8-10% to attract investors.

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