Collections Yield On Balance Calculator

Collections yield measures your A/R recovery efficiency at portfolio scale.

30-60 day balance

60-90 day balance

90+ day balance

30-60 cure rate %

60-90 cure rate %

90+ cure rate %

Blended collections yield

0.5%

Total projected collected

$57,190

Total A/R balance

$105,000

How the math works

Collected = Σ(balance × cure rate). Yield = collected ÷ total balance.

$45k × 85% + $22k × 55% + $38k × 18% = $57,190 ÷ $105k = 54.5% blended yield.

How to Use

Enter 30-60 day balance.
Enter 60-90 day balance.
Enter 90+ day balance.
Enter 30-60 cure rate %.
Enter 60-90 cure rate %.
Enter 90+ cure rate %.
Read blended collections yield.

Frequently Asked Questions

What's a healthy collections yield?

Stabilized multifamily: 85-95% of 30-60 day, 60-75% of 60-90, 15-35% of 90+. Class A: even higher (90-97% of 30-60). Class C: lower (75-85% of 30-60). Commercial: 65-85% of 30-60. Blended portfolio yield typically 70-85%. Declining yield indicates underlying tenant-credit stress or process breakdown. Institutional operators alert when cure rate falls more than 500 bps month-over-month.

What drives the cure rate?

Bucket age (30-60 cures easiest, 90+ hardest), automated reminders (ACH re-try, email/SMS), payment plan availability (10-15% lift in cure for stretched balances), portal UX (one-click pay beats mailing check), notification escalation (missing-payment call on day 10, personal letter on day 20). Every process improvement adds 100-400 bps to bucket-specific cure rate. Compounds to meaningful NOI.

When to write off vs collect?

Write-off rule: balance <$1,500 + age >90 + tenant moved out = cheaper to abandon than to pursue. Larger balances or employed tenants in permissive states: continue through judgment. Institutional operators run a monthly 'write-off committee' review of aged balances >$2k to decide per-case. Writing off too aggressively loses recovery; too conservatively wastes legal fees chasing uncollectibles. Balance is an art-science.

How does this tie to NOI forecasting?

Forecasted NOI = (billed rent × collections yield × occupancy). A 200-bps yield drop on $20M billed rent = $400k NOI hit — equivalent to losing 4-5 stabilized units. LPs and lenders watch month-on-month yield as an early-warning indicator of portfolio health. Submit collections yield alongside occupancy and RevPAR/rent in investor quarterlies. Good yield trend supports higher valuation at disposition.