See Also
Capitalization RateWhat is the Mortgage Constant in Commercial Real Estate?What Is A Good Cap Rate & How To Calculate It | FortuneBuildersExit Cap Rate | Formula + CalculatorARTICLE SUMMARY
Capitalization rate (or cap rate for short) can help determine the profitability of your vacation rental. But the topic can seem confusing and math-intensive to new or even veteran hosts. In this step-by-step guide, we break down how to calculate cap rate, how to know if your cap rate is healthy, and what your cap rate can teach you about your business.
