Commercial real estate
Development Yield on Cost Calculator
Compare stabilized NOI with total project cost. Replace every default with figures that apply to your property and location.
Calculate your result
What this calculator estimates
Compare stabilized NOI with total project cost. It combines the inputs below to produce Yield on cost. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.
Worked example
Using the displayed sample assumptions, the calculator produces 7.38%. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.
Inputs and assumptions
- Land or acquisition cost — sample input: 900000 currency units
- Hard construction costs — sample input: 1800000 currency units
- Soft costs — sample input: 350000 currency units
- Financing and carrying costs — sample input: 200000 currency units
- Stabilized annual NOI — sample input: 240000 currency units
How to interpret the result
Use lease definitions and verified operating statements. Compare a conservative case with an expected case and keep a record of the assumptions used.
Common mistake to avoid
Do not compare properties using inconsistent NOI definitions. Local definitions, taxes, lending practices and measurement requirements can materially change the result.
Related calculators
Reviewed 2026-09-08.