FREE VALUATION CALCULATOR
Yield on Cost Calculator
Compare stabilized NOI with total development or acquisition cost.
INDICATIVE RESULT
7.33%Stabilized NOI€1,100,000
Total project cost€15,000,000
Calculated directly from the assumptions shown.
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How the yield on cost calculation works
Yield on cost = stabilized annual NOI ÷ total project cost.
Example calculation
€1.1m of stabilized NOI on €15.0m of total cost gives a 7.33% yield on cost.
INVESTMENT USE
How professionals use the result
Use yield on cost to compare project economics with market cap rates and required development spread.
Common mistakes
- Excluding financing or professional fees from cost
- Using pre-stabilization NOI
- Comparing with a cap rate based on another NOI definition
- Ignoring timing and risk
CLEAR ANSWERS