Yield on Cost Calculator
Compare stabilised NOI with total development or acquisition cost.
Calculated directly from the assumptions shown.
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Get the model · €79 incl. VATHow the Yield on Cost calculation works
Yield on cost = stabilised annual NOI ÷ total project cost.
Example calculation
€1.1m of stabilised NOI on €15.0m of total cost gives a 7.33% yield on cost.
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-stabilisation NOI
- Comparing with a cap rate based on another NOI definition
- Ignoring timing and risk
Yield on Cost Calculator FAQs
What does the Yield on Cost calculator measure?
Compare stabilised NOI with total development or acquisition cost.
What formula does the Yield on Cost calculator use?
Yield on cost = stabilised annual NOI ÷ total project cost.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use yield on cost to compare project economics with market cap rates and required development spread.
Which mistakes are most common?
Excluding financing or professional fees from cost; Using pre-stabilisation NOI; Comparing with a cap rate based on another NOI definition; Ignoring timing and risk.