Capitalization Rate

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Capitalization rate, abbreviated as CR, is the rate of return for an investor.

 

Capitalization Rate Formula

\(\large{ CR =  \frac{ NOI }{ CMV }   }\)  

Where:

\(\large{ CR }\) = capitalization rate

\(\large{ CMV }\) = current market value of the property

\(\large{ NOI }\) = net operating income

 

Tags: Equations for Manufacturing