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.


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Capitalization Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 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: March 29, 2024).
American Psychological Association (APA):
Capitalization Rate. PayrollHeaven.com. Retrieved March 29, 2024
, 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.