Yield Capitalization Value Calculator
Explicit yieldcapitalizationDCFfutureNOIplus separately externally assessed NET reversion under actual dis counter, period1…Nmatchingunits/timing, currency. Not simpleNOI/cap direct capitalization or select appreciation.
Description
Yield capitalization discounts future net operating income and a terminal net reversion.
Yield capitalization discounts future net operating income and a terminal net reversion.1
Cash-flow timing and the discount rate's period must be consistent. The calculation and input requirements are explained below.
When to use Yield Capitalization Value Calculator
Enter a nonempty future NOI list, finite discount rate greater than -1 and finite net reversion in matching currency units.
How to use Yield Capitalization Value Calculator and how it works
- Prepare the measurements or independently established model inputs described below, with matching units and observation scope.
- Enter the required fields and run Yield Capitalization Value Calculator.
- Read the result fields using the formula, output units, signs and ordering explained below.
- Correct any rejected inputs and rerun; interpret the result within the stated model and its assumptions.
| Input field | Meaning | Value type | Requirement |
|---|---|---|---|
| actualNextPeriodsNoi | Actual Next Periods Noi. Use the units and matching context stated in the calculation below. | array of number | Required; other constraints below |
| callerIndependentDiscountRate | Caller Independent Discount Rate. Use the units and matching context stated in the calculation below. | number | Required; finite; other constraints below |
| callerIndependentNetReversionValue | Caller Independent Net Reversion Value. Use the units and matching context stated in the calculation below. | number | Required; finite; other constraints below |
Enter a nonempty future NOI list, finite discount rate greater than -1 and finite net reversion in matching currency units. Discount NOI at periods 1 through N and add net reversion discounted at period N. Signed cash flows and reversion are allowed. The tool does not set a cap rate or predict appreciation.
value=sum(NOI_i/(1+r)^(i+1))+netReversion/(1+r)^N Apply the input ordering, units and branch conditions stated above.
| Output field | Meaning | Value type |
|---|---|---|
| result | Object containing the calculated or selected fields below. | object |
| result.value | Numeric result under the formula and output units explained above. | number |
{
"input": {
"actualNextPeriodsNoi": [
50,
50
],
"callerIndependentDiscountRate": 0,
"callerIndependentNetReversionValue": 50
},
"output": {
"result": {
"value": 150
}
}
}Limitations and assumptions
The calculation uses the supplied observations and model inputs. It does not collect measurements, select a reference population or coefficient, or establish that the model applies to the actual case. The stated branch conditions and output units remain part of the result.
All fields require explicit values. Unexpected fields, wrong types, nonfinite numbers and sparse arrays are rejected. Alignment, bounds and supported-token rules are explained above; extremely large inputs or nonfinite results can also fail. Input errors differ from successful false comparisons, unavailable-domain flags and empty match lists.
Alternative or Complementary methods
Use Real Estate IRR Calculator for a complementary operation: Periodic IRR is a rate that makes discounted cash flows sum to zero.
Use IRR Hurdle Calculator for a complementary operation: An IRR hurdle comparison needs a return and contract criteria expressed per the same period.
References
-
Yield Capitalization Value Calculator — tool.io
Similar or alternative tools
- Real Estate IRR Calculator
Periodic IRR is a rate that makes discounted cash flows sum to zero.
- IRR Hurdle Calculator
An IRR hurdle comparison needs a return and contract criteria expressed per the same period.