Yield

Definition: The return on an investment expressed as a percentage of a defined investment amount or price over a specified period.

Example

Annual cash income of $6,000 on a $100,000 investment indicates a 6% simple cash yield before other adjustments.

Keep the distinction clear

Current yield, total return, cash-on-cash return, and internal rate of return measure different things. State which cash flows, costs, timing, and value changes the calculation includes.

Related terms

Investment · Capitalization Rate (Cap Rate) · Before-Tax Cash Flow

Keep studying

Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return

References: FREC Course II syllabus: investment concepts

Pronunciation (US): YEELD (capitals show stress)

Pronunciation reference: Merriam-Webster