Finance & Money · 资本化率（Cap Rate） · Updated 2026-10-25
What Is Capitalization Rate?
Definition
Cap rate = annual net operating income (rent minus vacancy, management, maintenance and taxes) ÷ property value. It answers "what percentage does this building earn yearly as a business," and comparing it to your mortgage rate shows whether leverage amplifies or erodes returns: cap rate 4% below a 4.2% loan rate means leveraged renting loses money yearly. Commercial property is often valued directly as NOI ÷ cap rate.
Formula
Cap Rate = NOI / Property Value
Worked Example
A 3M shop renting 180k/year with 60k vacancy and operating costs has NOI=120k → cap rate 4%; with a 4.5% loan rate, paying cash beats borrowing.
Common Misconception
Treating cap rate as gross rental yield — the gross figure (no vacancy/operating costs) runs 1-3 points higher. Nor is it IRR: cap rate is a one-year static snapshot ignoring appreciation and amortization, so it skews long-term total-return estimates optimistic.
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