A real estate capitalization rate, or cap rate, is a popular metric to estimate the rate of return on an investment property.

Free cap rate calculator and complete guide. Learn how to use and calculate cap rates for investments real estate.

As you recall, the capitalization rate is determined by two methods; the net operating income divided by property value or by a formula.

How To Calculate The ROI Once you’ve gathered all of the important information regarding a property and you are ready to calculate the ROI, below are some of the important figures you will need ...