Capitalization Rate

Knowledge Center

Summary, forum, best practices, expert tips and resources.


What is Capitalization Rate? Meaning.

The Capitalization Rate is a ratio used to determine the value of income producing properties. Capitalization Rates are used to figure out how much time will be needed to reach a certain level of profit upon an investment. Put simply, the "Cap Rate" is the net operating income divided by the sales price or value of a property expressed as a percentage. Investors, lenders and appraisers can use the Cap Rate to estimate the purchase price for different types of income producing properties.

Capitalization Rate Special Interest Group

Special Interest Group (7 members)

Forum about Capitalization Rate  

Discussions about Capitalization Rate.

Best Practices about Capitalization Rate

Here you find the most valuable discussions from the past.

Expert Tips about Capitalization Rate

Here you will find advices by experts.

Information Sources about Capitalization Rate

Here you will find powerpoints, videos, news, etc.

3 Minute Introduction to Financial Ratio Analysis: Why do it and What are the Main Types?

Types of Financial Ratios, Financial Ratio Analysis, Financial Ratio Types (...)

Compare also: Payback Period

Special Interest Group Leader

You here? Sign up for free


Return to Management Hub: Decision-making & Valuation  |  Finance & Investing

More on Management  |  Return to Management Dictionary  | 


This ends our Capitalization Rate summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.5 - Last updated: 4-7-2020. All names of their owners.