The CAP Rate is the most misunderstood element of Sound Investment Principle. Simply put the CAP Rate is the Rate of Return on the purchase of a property when the purchase is made with 100% Cash. User Friendly CAP 1.0 permits the user to enter appropriate data fields and the system calculates the Investment CAP rate-of-return through assessment of Purchase Price, Direct Revenue, Re-Captured Expense Revenue, Operating Income Expenses & resulting Net Operating Income.