Cap Rate Calculator
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Cap rate assumes an all-cash purchase (NOI ÷ price) — it's a measure of the property itself. Cash-on-cash factors in estimated financing at 25% down.
Example: $520,000 condo rented at $3,400/mo
Gross rent $40,800/year. After vacancy, HOA, tax, insurance, and light management, NOI often lands well below gross rent.
Cap rate = NOI ÷ purchase price. Miami condo HOA and insurance can move the rate by a full percentage point versus a no-fee assumption.
A mid-4% to mid-5% cap is a common Miami condo starting point once carrying costs are honest — confirm with the live calculator.
How it works
- Enter purchase price and expected gross rent.
- Add vacancy, HOA, taxes, insurance, and management.
- Review NOI, cap rate, GRM, and cash-on-cash.