Capitalised Earning Value of Property Calculator

✖Net Rental Return Per Annum refers to the income generated from a property through rental payments after deducting various expenses associated with owning and maintaining the property.ⓘ Net Rental Return Per Annum [NRRPA]			+10% -10%
✖Rate of Capitalisation is the capitalisation rate which is a fundamental metric used in real estate investment analysis to estimate the potential return on an income producing property.ⓘ Rate of Capitalisation [RC]			+10% -10%

✖Capitalised Earning Value of a Property is a method used to estimate the overall value of a property based on its income-generating potential.ⓘ Capitalised Earning Value of Property [CEVP]

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Formula

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Capitalised Earning Value of Property

Formula

`"CEVP" = ("NRRPA"*100)/"RC"`

Example

`"98214.29"=("5500"*100)/"5.60"`

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Capitalised Earning Value of Property Solution

STEP 0: Pre-Calculation Summary

Formula Used

Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation
CEVP = (NRRPA*100)/RC
This formula uses 3 Variables

Variables Used

Capitalised Earning Value of a Property - Capitalised Earning Value of a Property is a method used to estimate the overall value of a property based on its income-generating potential.
Net Rental Return Per Annum - Net Rental Return Per Annum refers to the income generated from a property through rental payments after deducting various expenses associated with owning and maintaining the property.
Rate of Capitalisation - Rate of Capitalisation is the capitalisation rate which is a fundamental metric used in real estate investment analysis to estimate the potential return on an income producing property.

STEP 1: Convert Input(s) to Base Unit

Net Rental Return Per Annum: 5500 --> No Conversion Required
Rate of Capitalisation: 5.6 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CEVP = (NRRPA*100)/RC --> (5500*100)/5.6

Evaluating ... ...

CEVP = 98214.2857142857

STEP 3: Convert Result to Output's Unit

98214.2857142857 --> No Conversion Required

FINAL ANSWER

98214.2857142857 ≈ 98214.29 <-- Capitalised Earning Value of a Property

(Calculation completed in 00.004 seconds)

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Commercial Interest

Go Commercial Interest = (Deposits*Annual Interest Rate*Period in Days)/(100*360)

Capitalised Earning Value of Property

Go Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation

Calculative Deduction

Go Calculative Deduction = (Replacement Cost-Declining Value)/Period

Annual Rent of Annuity

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Interest Charges Per Quarter

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Capitalised Earning Value of Property Formula

Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation
CEVP = (NRRPA*100)/RC

What do you mean by Capitalised Earning Value of a Property ?

Capitalised Earning Value of a Property is a valuation method that appraisers and real estate investors use to estimate the value of income-producing real estate. It is based on the expectation of future benefits of the property. This method of valuation relates value to the market rent that a property can be expected to earn and to the resale value. Overall, the capitalized earnings value method provides a way to estimate the value of a property based on its income-generating capacity, making it a useful tool for investors and appraisers in the real estate industry. The cap rate is directly related to risk. A departmental store would have a high cap rate because it is a higher risk. A post office building would have a lower capitalisation rate because it is a lower risk.

How to Calculate Capitalised Earning Value of Property?

Capitalised Earning Value of Property calculator uses Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation to calculate the Capitalised Earning Value of a Property, Capitalised Earning Value of Property is a process of estimating the value of a property through its present earnings. Capitalised Earning Value of a Property is denoted by CEVP symbol.

How to calculate Capitalised Earning Value of Property using this online calculator? To use this online calculator for Capitalised Earning Value of Property, enter Net Rental Return Per Annum (NRRPA) & Rate of Capitalisation (RC) and hit the calculate button. Here is how the Capitalised Earning Value of Property calculation can be explained with given input values -> 98214.29 = (5500*100)/5.6.

FAQ

What is Capitalised Earning Value of Property?

Capitalised Earning Value of Property is a process of estimating the value of a property through its present earnings and is represented as CEVP = (NRRPA*100)/RC or Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation. Net Rental Return Per Annum refers to the income generated from a property through rental payments after deducting various expenses associated with owning and maintaining the property & Rate of Capitalisation is the capitalisation rate which is a fundamental metric used in real estate investment analysis to estimate the potential return on an income producing property.

How to calculate Capitalised Earning Value of Property?

Capitalised Earning Value of Property is a process of estimating the value of a property through its present earnings is calculated using Capitalised Earning Value of a Property = (Net Rental Return Per Annum*100)/Rate of Capitalisation. To calculate Capitalised Earning Value of Property, you need Net Rental Return Per Annum (NRRPA) & Rate of Capitalisation (RC). With our tool, you need to enter the respective value for Net Rental Return Per Annum & Rate of Capitalisation and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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