How we worked it out
Updated as you change the numbers.
- Net operating income: $45,600.00 − $14,000.00 = $31,600.00.
- Cap rate: $31,600.00 ÷ $500,000.00 = 6.32%.
Method and assumptions
Cap rate = net operating income ÷ price. Net operating income is rent after vacancy, less operating costs, before any mortgage payment or income tax.
Questions
What is the cap rate on a $500,000 property with $31,600 of net income?
6.32%. That is the default example: $48,000 of rent, less 5% vacancy and $14,000 of costs.
Sources
Method and figures checked on October 31, 2026. Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.