Cap Rate Calculator
Calculate capitalization rates for Canadian investment properties. Analyze property valuations and compare investment opportunities.
Property Information
Current market value or acquisition price
Annual Income
Parking, laundry, storage, etc.
Expected annual vacancy percentage
Annual Operating Expenses
Cap Rate Analysis
Capitalization Rate
5.88%
Fair
Formula:NOI ÷ Property Value
Calculation:$29400 ÷ $500,000
Financial Summary
Gross Annual Income$42000
Effective Gross Income$39900
Operating Expenses$10500
Net Operating Income$29400
Additional Metrics
Monthly NOI$2450
Operating Expense Ratio26.3%
Gross Rent Multiplier (GRM)11.9x
Annual Yield7.98%
📊 Canadian Cap Rate Benchmarks
• 8%+ ExcellentStrong cash flow markets
• 6-8% GoodBalanced markets
• 4-6% FairAppreciation-focused
• <4% PoorHigh-priced markets
💡 Cap Rate Analysis Tips
- • Higher cap rates typically indicate higher risk or lower growth markets
- • Compare cap rates within the same neighborhood and property type
- • Consider market trends: rising vs. declining cap rate environments
- • Factor in capital expenditures not included in operating expenses
- • Use cap rates to estimate property values: NOI ÷ Market Cap Rate