Capitalized Value using Profit Based Valuation Calculator

✖Net Rental Income is calculated by deducting all outgoings from gross rent.ⓘ Net Rental Income [R_N]			+10% -10%
✖Years Purchase in perpetuity is defined as the capital sum required to be invested in order to receive a net annual income of rs/- 1 at a certain rate of interest.ⓘ Years Purchase [Y]			+10% -10%

✖Capitalized Value is the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property.ⓘ Capitalized Value using Profit Based Valuation [C_v]

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Formula

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Capitalized Value using Profit Based Valuation

Formula

`"C"_{"v"} = "R"_{"N"}*"Y"`

Example

`"52800"="4800"*"11"`

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Capitalized Value using Profit Based Valuation Solution

STEP 0: Pre-Calculation Summary

Formula Used

Capitalized Value = Net Rental Income*Years Purchase
C_v = R_N*Y
This formula uses 3 Variables

Variables Used

Capitalized Value - Capitalized Value is the amount of money whose annual interest at the highest prevailing rate of interest will be equal to the net income from the property.
Net Rental Income - Net Rental Income is calculated by deducting all outgoings from gross rent.
Years Purchase - Years Purchase in perpetuity is defined as the capital sum required to be invested in order to receive a net annual income of rs/- 1 at a certain rate of interest.

STEP 1: Convert Input(s) to Base Unit

Net Rental Income: 4800 --> No Conversion Required
Years Purchase: 11 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_v = R_N*Y --> 4800*11

Evaluating ... ...

C_v = 52800

STEP 3: Convert Result to Output's Unit

52800 --> No Conversion Required

FINAL ANSWER

52800 <-- Capitalized Value

(Calculation completed in 00.020 seconds)

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Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

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< 17 Valuation Engineering Calculators

Annual Installment for Sinking Fund

Go Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)

Coefficient of Annual Sinking Fund

Go Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)

Annual Sinking Fund using Sinking Fund Method

Go Annual Sinking Fund = Rate of Interest/((1+Rate of Interest)^Life of Asset in Years-1)

Percentage Rate of Annual Depreciation

Go Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)

Years Purchase when Sinking Fund is Recovered

Go Years Purchase = 1/(Rate of Interest on Capital+Rate of Sinking Fund)

Rate of Sinking Fund given YP

Go Rate of Sinking Fund = (1/Years Purchase)-Rate of Interest on Capital

Coefficient of Annual Sinking Fund given Sinking Fund

Go Coefficient of Sinking Fund = Annual Installment/Sinking Fund

Annual Installment given Sinking Fund

Go Annual Installment = Coefficient of Sinking Fund*Sinking Fund

Sinking Fund for Buildings

Go Sinking Fund = Annual Installment/Coefficient of Sinking Fund

Capitalized Value using Profit Based Valuation

Go Capitalized Value = Net Rental Income*Years Purchase

Capitalized Value

Go Capitalized Value = Net Rental Income*Years Purchase

Gross Rent given Net Rent in Rental Method

Go Gross Rent = Net Rental Income+Outgoings of Repairs

Net Rent using Rental Method of Valuation

Go Net Rental Income = Gross Rent-Outgoings of Repairs

Outgoings using Rental Method

Go Outgoings of Repairs = Gross Rent-Net Rental Income

Net Income using Profit Based Valuation

Go Net Income = Gross Income-Outgoings of Repairs

Rate of Interest given Years Purchase

Go Rate of Interest = 100/Years Purchase

Years Purchase

Go Years Purchase = 100/Rate of Interest

Capitalized Value using Profit Based Valuation Formula

Capitalized Value = Net Rental Income*Years Purchase
C_v = R_N*Y

How do you Capitalise a value?

Capitalization rate is calculated by dividing a property's net operating income by the current market value. This ratio, expressed as a percentage, is an estimation for an investor's potential return on a real estate investment.

How to Calculate Capitalized Value using Profit Based Valuation?

Capitalized Value using Profit Based Valuation calculator uses Capitalized Value = Net Rental Income*Years Purchase to calculate the Capitalized Value, The Capitalized Value using Profit Based Valuation formula is defined as the current value of an asset, based on the total income expected to be realized over its economic life span. Capitalized Value is denoted by C_v symbol.

How to calculate Capitalized Value using Profit Based Valuation using this online calculator? To use this online calculator for Capitalized Value using Profit Based Valuation, enter Net Rental Income (R_N) & Years Purchase (Y) and hit the calculate button. Here is how the Capitalized Value using Profit Based Valuation calculation can be explained with given input values -> 52800 = 4800*11.

FAQ

What is Capitalized Value using Profit Based Valuation?

The Capitalized Value using Profit Based Valuation formula is defined as the current value of an asset, based on the total income expected to be realized over its economic life span and is represented as C_v = R_N*Y or Capitalized Value = Net Rental Income*Years Purchase. Net Rental Income is calculated by deducting all outgoings from gross rent & Years Purchase in perpetuity is defined as the capital sum required to be invested in order to receive a net annual income of rs/- 1 at a certain rate of interest.

How to calculate Capitalized Value using Profit Based Valuation?

The Capitalized Value using Profit Based Valuation formula is defined as the current value of an asset, based on the total income expected to be realized over its economic life span is calculated using Capitalized Value = Net Rental Income*Years Purchase. To calculate Capitalized Value using Profit Based Valuation, you need Net Rental Income (R_N) & Years Purchase (Y). With our tool, you need to enter the respective value for Net Rental Income & Years Purchase and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Capitalized Value?

In this formula, Capitalized Value uses Net Rental Income & Years Purchase. We can use 1 other way(s) to calculate the same, which is/are as follows -

Capitalized Value = Net Rental Income*Years Purchase

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