.cr-calculator-wrapper {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
background: #ffffff;
padding: 30px;
border-radius: 12px;
box-shadow: 0 4px 20px rgba(0,0,0,0.08);
border: 1px solid #e0e0e0;
}
.cr-header {
text-align: center;
margin-bottom: 25px;
}
.cr-header h2 {
color: #2c3e50;
margin: 0;
font-size: 28px;
}
.cr-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.cr-grid {
grid-template-columns: 1fr;
}
}
.cr-input-group {
margin-bottom: 15px;
}
.cr-input-group label {
display: block;
font-weight: 600;
margin-bottom: 8px;
color: #555;
font-size: 14px;
}
.cr-input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
font-size: 16px;
box-sizing: border-box;
transition: border 0.3s;
}
.cr-input-group input:focus {
border-color: #3498db;
outline: none;
}
.cr-section-title {
grid-column: 1 / -1;
font-size: 18px;
font-weight: bold;
color: #3498db;
margin-top: 10px;
border-bottom: 2px solid #f0f0f0;
padding-bottom: 5px;
}
.cr-btn {
grid-column: 1 / -1;
background: #27ae60;
color: white;
border: none;
padding: 15px;
font-size: 18px;
font-weight: bold;
border-radius: 6px;
cursor: pointer;
margin-top: 10px;
transition: background 0.3s;
width: 100%;
}
.cr-btn:hover {
background: #219150;
}
.cr-results {
grid-column: 1 / -1;
background: #f8f9fa;
padding: 20px;
border-radius: 8px;
margin-top: 20px;
border: 1px solid #e9ecef;
display: none;
}
.cr-result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
font-size: 16px;
}
.cr-result-item:last-child {
border-bottom: none;
}
.cr-highlight {
font-size: 24px;
font-weight: 800;
color: #2c3e50;
}
.cr-highlight.good {
color: #27ae60;
}
.cr-content {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
}
.cr-content h2 {
color: #2c3e50;
margin-top: 30px;
}
.cr-content h3 {
color: #34495e;
margin-top: 20px;
}
.cr-content ul {
margin-bottom: 20px;
}
.cr-content li {
margin-bottom: 8px;
}
.cr-content table {
width: 100%;
border-collapse: collapse;
margin: 20px 0;
}
.cr-content th, .cr-content td {
border: 1px solid #ddd;
padding: 12px;
text-align: left;
}
.cr-content th {
background-color: #f2f2f2;
}
function calculateCapRate() {
// 1. Get Input Values
var price = parseFloat(document.getElementById('crPurchasePrice').value);
var grossIncome = parseFloat(document.getElementById('crGrossIncome').value);
var vacancyRate = parseFloat(document.getElementById('crVacancyRate').value);
var tax = parseFloat(document.getElementById('crPropertyTax').value) || 0;
var insurance = parseFloat(document.getElementById('crInsurance').value) || 0;
var maintenance = parseFloat(document.getElementById('crMaintenance').value) || 0;
var management = parseFloat(document.getElementById('crManagement').value) || 0;
// 2. Validation
if (isNaN(price) || price <= 0) {
alert("Please enter a valid Property Purchase Price.");
return;
}
if (isNaN(grossIncome) || grossIncome < 0) {
alert("Please enter valid Gross Annual Rental Income.");
return;
}
if (isNaN(vacancyRate) || vacancyRate = 8) {
capRateEl.className = "cr-highlight good";
} else {
capRateEl.className = "cr-highlight";
}
}
What is a Cap Rate Calculator?
The Cap Rate Calculator (Capitalization Rate Calculator) is an essential tool for real estate investors to evaluate the profitability and return potential of an investment property. Unlike a mortgage calculator, which focuses on your monthly payments, the Cap Rate focuses strictly on the property's ability to generate natural income relative to its purchase price, assuming an all-cash purchase.
Calculating the Cap Rate allows investors to compare different properties on an apples-to-apples basis, regardless of how they are financed. It is the primary metric used to determine if a rental property is a "good deal" or if it presents too much risk for the expected return.
The Cap Rate Formula
The calculation relies on two main figures: Net Operating Income (NOI) and the Property Value (or Cost).
Cap Rate = (Net Operating Income / Property Asset Value) × 100%
Where:
- Net Operating Income (NOI): This is your annual revenue minus all necessary operating expenses. Note: NOI does not include mortgage payments (debt service).
- Operating Expenses: These include property taxes, insurance, management fees, maintenance, utilities, and vacancy losses.
- Property Value: The current market value or the purchase price of the asset.
Example Calculation
Imagine you are looking to buy a duplex for $500,000.
- The property generates $60,000 in gross annual rent.
- You estimate a 5% vacancy rate ($3,000 loss).
- Operating expenses (taxes, insurance, repairs) total $17,000 per year.
First, calculate the NOI:
($60,000 Rent – $3,000 Vacancy) – $17,000 Expenses = $40,000 NOI
Next, calculate the Cap Rate:
($40,000 / $500,000) = 0.08 or 8.0%
What is a "Good" Cap Rate?
A "good" cap rate is subjective and depends heavily on the location, property class, and current interest rates. However, general market sentiment often follows these guidelines:
| Cap Rate Range |
Risk Profile |
Typical Property Type |
| 3% – 5% |
Low Risk |
Class A properties in prime metropolitan areas (e.g., NYC, SF). High appreciation potential but low cash flow. |
| 5% – 8% |
Moderate Risk |
Class B properties in stable suburban neighborhoods. A balanced mix of cash flow and stability. |
| 8% – 12% |
Higher Risk |
Class C properties or rural areas. High cash flow is required to offset the risk of tenant turnover or major repairs. |
Why Use This Calculator?
Using an automated calculator prevents errors in manual math, particularly when factoring in vacancy rates and itemized expenses. By accurately inputting your specific costs for property management and maintenance, you get a realistic view of your potential Return on Investment (ROI) before you even make an offer.