Capitalization Rate

Business, Legal & Accounting Glossary

Definition: Capitalization Rate


Capitalization Rate


Full Definition of Capitalization Rate


The discount rate used to determine the present value of a stream of future earnings. Equals normalized earnings after taxes divided by present value, expressed as a percentage.


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

Definition Sources


Definitions for Capitalization 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 | 0 Views.