The Cap Rate, or Capitalization Rate, is a fundamental metric used in real estate to determine the rate of return on an investment property based on the income it is expected to generate.
Return on Investment measures the profitability of an investment. It is a ratio that compares the gain or loss from an investment relative to its cost.
Return on Investment (ROI) measures the profitability of an investment, calculated as the net profit from an investment divided by the original cost of the investment, usually expressed as a percentage.
ROI measures the gain or loss generated on an investment relative to the amount of money invested.
