Money Tools

Yield on Cost Calculator

Estimate yield on cost from annual income and the original investment cost.

Updated April 13, 2026
Free online tool
Planning and research use

Why this page exists

Income investing gets easier to review when annual income is compared with original cost basis instead of today's market price. This calculator helps visitors estimate yield on cost from annual dividend or income and original investment cost.

Interactive tool

Run the estimate

Enter your numbers and read the result first, then use the sections below to understand what affects the outcome.

Calculator

Yield on cost calculator

Estimate yield on cost from annual income and the original investment cost.

Result

6.00%

Estimated yield on cost based on annual income divided by the original investment cost entered.

Yield on cost6.00%

Annual income used$540.00

Original cost used$9,000.00

Income per $1,000 of cost$60.00

$540.00 of annual income divided by $9,000.00 of original cost gives a yield-on-cost estimate near 6.00%.
Yield on cost keeps the original purchase cost in the denominator, which is why it can differ from a current yield based on today's market value.
Use the result as a simple income-planning view only, because taxes, payout changes, and reinvestment choices can all change the bigger income picture.

This is a simple income-on-cost metric, not investing advice. It looks at the original cost basis rather than current market value, so it should not be confused with current yield.

Planning note

Last updated April 13, 2026. Use this tool to compare scenarios and plan ahead, then confirm important details with the lender, employer, insurer, contractor, or other qualified provider involved in the final decision.

How it works

What the calculator is doing

Enter annual dividend or annual income and the original amount invested.

The calculator divides annual income by original cost to estimate yield on cost.

It also shows the income and cost used so the result is easy to verify.

Understanding your result

Yield on cost is different from current yield because it keeps original cost in the denominator. It is useful for planning and comparison, but it should not be mistaken for a current market-yield view.

Browse more money tools

Examples

Ways people use this tool

Example scenarios help turn a quick estimate into a more useful comparison or planning step.

Check income against original purchase cost

This can help long-term investors see how annual income compares with the amount originally invested.

Compare multiple income positions

A yield-on-cost estimate can make it easier to compare how different original purchase prices affect income results.

Use it with dividend tools

Yield on cost often fits naturally beside dividend yield, dividend growth, and dividend reinvestment planning.

FAQ

Common questions

How is yield on cost calculated here?

The calculator divides annual income by original investment cost and shows the result as a percentage.

How is yield on cost different from dividend yield?

Yield on cost uses the original purchase cost, while dividend yield usually compares income with the current price or value.

Is a higher yield on cost always better?

Not automatically. It can reflect strong income growth or a lower original cost basis, but it does not replace a fuller view of risk and current opportunity cost.

Related tools

Keep comparing

Use these related tools to compare nearby scenarios, check a second estimate, or keep narrowing down the right decision.

Money ToolsUpdated April 11, 2026