# Cap Rate Calculator Capitalization Rate Calculator

Let’s say you are considering selling your house, and after some research, you see that investors are buying properties like yours at a 10 percent capitalization rate. The cyclical pattern in cap rates is an influential factor that directly impacts the property valuation of real estate assets in the broader market. The formula to calculate the cash yield consists of dividing the levered cash flow of a property by the equity investment contributed by the real estate investor. Return on investment indicates what the potential return of an investment could be over a specific time horizon. Given the inefficiency of …