Yield on Cost Calculator for Value-Add
Evaluate value-add renovation projects by comparing stabilized NOI against total project cost. Break down renovation costs per unit and calculate the spread above market cap rates.
Acquisition
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Renovation Budget
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Interest, taxes, insurance during renovation period
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Income
Current NOI before renovations
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Projected NOI after renovations and lease-up
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Value-Add Analysis
Enter acquisition and renovation details
This calculator shows one property.
Cai shows your entire portfolio.
BubbleGum BI tracks value-add progress, NOI ramp, and yield on cost across every asset — with renovation budget tracking and AI-driven diagnostics.
Schedule a DemoFrequently Asked Questions
How do you calculate yield on cost for a value-add project?
YoC = Stabilized NOI / (Acquisition Price + Total Renovation Cost). Include unit upgrades, common area, and carry costs.
What is a good yield on cost for value-add multifamily?
Target 100-200+ bps above market cap rate. If cap rates are 5%, aim for 6-7%+ YoC.
How do I estimate renovation ROI per unit?
Rent premium per unit / renovation cost per unit. $200/mo increase on $15k reno = $2,400/$15,000 = 16% ROI.
What renovation costs should I include?
Unit interiors, common areas, exterior, HVAC/systems, contingency (10-15%), and carry costs during renovation.