This paper studies clutter’s effect on MIMO radar performance through obtaining closed-form Cramer Rao lower bounds (CRLBs) for the range and velocity parameters versus the powers assigned to the transmit antennas which resulted in more calculation’ complexity. To verify extracted CRLBs, the maximum likelihood estimation’s error variance (MLEEV) of range and velocity were derived in attendance of clutter. Based on obtained closed-form CRLBs, four optimized power allocation (PA) strategies are proposed which consider measurement error statistics as the objective function or constraints to improve radar performance. So, the calculated closed-form CRLBs are simplified to the closed-forms versus assigned powers to the transmitters. Simulation results verify the proposed CRLBs’ accuracy, and improvements have been made by proposed power allocations.