Yield on Cost Calculator

Calculate the stabilized yield on the total project cost to evaluate development and value-add opportunities.

Formula

Yield on Cost = Stabilized NOI / Total Project Cost × 100

Pro Tips

1.Development spread = Yield on Cost - Market Cap Rate

2.Target 100-200bps above market cap rate

3.Accounts for all-in cost including improvements

Related Calculators

Market Data

10Y Treasury3.96%↓ 5bps

Fed Funds3.50-3.75%HOLD

NNN Avg Cap6.25%↓ 15bps YoY

CRE Loan Vol$52.1B↑ 8%

CMBS Spread165bps↓ 10bps

NNN Spread229bps↑ 12bps

Calculators/Yield on Cost Calculator

Development