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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. Check FAQs
Cv=RNY
Cv - Capitalized Value?RN - Net Rental Income?Y - Years Purchase?

Capitalized Value Example

With values
With units
Only example

Here is how the Capitalized Value equation looks like with Values.

Here is how the Capitalized Value equation looks like with Units.

Here is how the Capitalized Value equation looks like.

52800Edit=4800Edit11Edit
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Capitalized Value Solution

Follow our step by step solution on how to calculate Capitalized Value?

FIRST Step Consider the formula
Cv=RNY
Next Step Substitute values of Variables
Cv=480011
Next Step Prepare to Evaluate
Cv=480011
LAST Step Evaluate
Cv=52800

Capitalized Value Formula Elements

Variables
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.
Symbol: Cv
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Net Rental Income
Net Rental Income is calculated by deducting all outgoings from gross rent.
Symbol: RN
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
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.
Symbol: Y
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other Formulas to find Capitalized Value

​Go Capitalized Value using Profit Based Valuation
Cv=RNY

Other formulas in Valuation Engineering category

​Go Sinking Fund for Buildings
S=IaIc
​Go Annual Installment given Sinking Fund
Ia=IcS
​Go Coefficient of Annual Sinking Fund
Ic=Ir(1+Ir)T-1
​Go Coefficient of Annual Sinking Fund given Sinking Fund
Ic=IaS

How to Evaluate Capitalized Value?

Capitalized Value evaluator uses Capitalized Value = Net Rental Income*Years Purchase to evaluate the Capitalized Value, The Capitalized Value formula is defined as 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 is denoted by Cv symbol.

How to evaluate Capitalized Value using this online evaluator? To use this online evaluator for Capitalized Value, enter Net Rental Income (RN) & Years Purchase (Y) and hit the calculate button.

FAQs on Capitalized Value

What is the formula to find Capitalized Value?
The formula of Capitalized Value is expressed as Capitalized Value = Net Rental Income*Years Purchase. Here is an example- 52800 = 4800*11.
How to calculate Capitalized Value?
With Net Rental Income (RN) & Years Purchase (Y) we can find Capitalized Value using the formula - Capitalized Value = Net Rental Income*Years Purchase.
What are the other ways to Calculate Capitalized Value?
Here are the different ways to Calculate Capitalized Value-
  • Capitalized Value=Net Rental Income*Years PurchaseOpenImg
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