Capitalisation Rate (Cap Rate)
Annual net operating income divided by property value or purchase price; financing is normally excluded.
Formula / expression:
NOI ÷ Property ValueUsed in sectors: Real Estate Investment
Annual net operating income divided by property value or purchase price; financing is normally excluded.
Practical reference for terms used across JUANA studies and calculators. Definitions explain use; they do not turn a metric into investment advice.
Annual net operating income divided by property value or purchase price; financing is normally excluded.
NOI ÷ Property ValueUsed in sectors: Real Estate Investment
JUANA Investment Research Desk · Methodology review of sources, model logic, separation of evidence from assumptions, and evidence links.