CalculateRealEstateROI

ROI Metrics

Yield on Cost

Stabilized NOI divided by total all-in cost (purchase + rehab + closing).

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

What a value-add deal will yield once it's fixed up. Compares to market cap rate to measure forced equity.

Examples

  • $30k stabilized NOI on $375k all-in = 8% yield on cost.
  • Versus 5.5% market cap = 250bps of forced spread.

Common mistakes

  • Using pro forma NOI before lease-up is complete.

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