Portfolio Cash Yield Calculator

Portfolio cash yield measures levered distributions. This calculator runs the metric and sensitivity.

Annual NOI

Annual debt service

Annual capex

Equity invested

Cash yield

7.72%

Annual cash flow

$1,120,000

DSCR

1.57

How the math works

Cash flow = NOI − debt service − capex. Cash yield = cash flow ÷ equity.

Low cash yield isn't always a problem — development projects run 0-3% during lease-up because capital is buying future NOI growth. Cash yield matters most for income-oriented funds with distribution obligations; growth funds should watch IRR more closely.

How to Use

Enter annual NOI.
Enter annual debt service.
Enter annual capex.
Enter equity invested.
Read cash yield.

Frequently Asked Questions

Target cash yield?

MF stabilized: 5-8%. Value-add Year 1: 3-5%; Year 3: 8-12%. Development: 0-3% in lease-up, 7-10% stabilized. Below 3% signals over-leverage or underperforming; above 12% signals distressed asset or capital risk.

Cash yield vs IRR?

Cash yield = periodic cash flow return. IRR = time-weighted including exit. Both matter: cash yield funds distributions and service costs; IRR captures exit appreciation and time value. Don't optimize one at expense of other.

Capex treatment?

Recurring capex (regular replacements) belongs in cash yield calc. Non-recurring (major reposition, roof, boiler) can be separated or capitalized. Investors reviewing yield expect recurring capex included; sponsors often omit — know which convention applies.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.