How do you calculate a cap rate?

You can calculate the capitalization rate of a property by dividing the property's net operating income (NOI) by the current property value. Determine your property's NOI by subtracting your operating expenses from your total annual income. Calculate your property's cap rate with our free cap rate formula calculator.

How do you find average cap rates by zip code?

In general, it's not possible to find average cap rates by zip code. This is because cap rates depend on a number of factors, such as expenses and home value, and these fluctuate over time and depend on your individual situation. Calculate the cap rate for your investment property using this free cap rate calculator.

Ben Mizes

President

Ben Mizes is the president of Clever Real Estate, the nation's leading real estate education platform for home buyers, sellers, and investors. Ben was named one of the top 200 most influential people in real estate in 2022.

To date, Clever has saved customers more than $190 million on realtor fees, with an average 5.0-star rating based on 3,500+ verified customer reviews on Trustpilot.

Ben is a licensed real estate agent in the State of Missouri, as well as an active real estate investor with a portfolio of 22 apartments in St. Louis City and County. Ben focuses his investments on multifamily apartments that need renovations.

Ben's work has been featured in Bigger Pockets, Inman, and other industry publications.

Ben graduated from the Kelley School of Business at Indiana University with a degree in Entrepreneurship and Corporate Innovation.

In his free time, Ben enjoys writing about real estate, watching hockey, or going on adventures with his dog.

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