Cambridge Dictionaries online Cambridge Dictionaries online

The most popular online dictionary and thesaurus for learners of English

  

English definition of “capitalization rate”

capitalization rate

noun [C] (UK also capitalisation rate)     (also cap rate)
ACCOUNTING, FINANCE the rate of interest used to calculate the present value of an investment or property that will provide an income in the future : Investors use the cap rate to estimate the purchase price for different types of income-producing properties .
(Definition of capitalization rate noun from the Cambridge Business English Dictionary © Cambridge University Press)
Focus on the pronunciation of capitalization rate

Word of the Day

friendship

a situation in which two people are friends

Word of the Day

Blog

Read our blog about how the English language behaves.

Learn More

New Words

Find words and meanings that have just started to be used in English, and let us know what you think of them.

Learn More