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The Ultimate Guide to Cap Rates: Formulas, Examples, and Tools | #cap Rate Calculator

The Ultimate Guide to Cap Rates: Formulas, Examples, and Tools

The Ultimate Guide to Cap Rates: Formulas, Examples, and Tools

A capitalization rate, or cap rate, measures the relationship between a property’s net operating income (NOI) and its purchase price or market value. Investors use the cap rate to estimate the rate of return they can expect if they were to buy the property with cash.