Cap Rate

Business, Legal & Accounting Glossary

Definition: Cap Rate


Cap Rate


Full Definition of Cap Rate


1. The discount rate used to determine the present value of a stream of future earnings. Typically this will be an appropriate risk-free return plus a premium to reflect the risk of that specific investment. 2. In real estate, the rate of return on a property.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/cap-rate/
Modern Language Association (MLA):
Cap Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 29, 2021 https://payrollheaven.com/define/cap-rate/.
Chicago Manual of Style (CMS):
Cap Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/cap-rate/ (accessed: November 29, 2021).
American Psychological Association (APA):
Cap Rate. PayrollHeaven.com. Retrieved November 29, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/cap-rate/

Definition Sources


Definitions for Cap Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 1 Views.