---
title: Yield
description: Yield is the return on an investment or the amount of profit, stated as a percentage of the amount invested. Learn more about Yield here.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Yield](https://www.realized1031.com/glossary/yield)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 20, 2022 5:00:00 AM

Yield is the [return on an investment](https://www.realized1031.com/glossary/return-on-investments-roi) or the amount of profit, stated as a percentage of the amount invested. Also known as the [rate of return](https://www.realized1031.com/glossary/rate-of-return). Yields can be depicted in a variety of ways including [levered](https://www.realized1031.com/glossary/financial-leverage) and unlevered and before tax and after tax. As example calculations, assume an investment property is acquired for $1,000,000 using $200,000 of [equity](https://www.realized1031.com/glossary/equity) and $800,000 of debt carrying a 5.0% interest-only rate. If the property generates [net operating income (NOI)](https://www.realized1031.com/glossary/net-operating-income-noi) of $80,000, then the unlevered yield is 8.0% ($80,000 NOI divided by $1,000,000 purchase price), and the levered yield is 20.0% ($80,000 NOI less $40,000 interest payment equals $40,000 divided by $200,000 of equity).

Assuming the investor has a marginal tax rate of 30.0%, then the after-tax unlevered yield would be 5.6% ($80,000 NOI less $24,000 in income tax ($80,000 times 30.0%) equals $56,000 divided by $1,000,000 purchase price).

Following this example, assuming the property generates $30,000 per year in [depreciation](https://www.realized1031.com/glossary/depreciation) allowances, then the property would produce an after-tax levered yield of 18.5% ($80,000 NOI less $40,000 of interest deductions less $30,000 of depreciation allowance equals $10,000 of taxable income times 30.0% marginal tax rate equals $3,000 tax liability.

[View full post](https://www.realized1031.com/glossary/yield)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "The Realized Team"
  },
  "dateModified" : "2022-06-20T16:22:06.978Z",
  "datePublished" : "2022-06-20T05:00:00Z",
  "headline" : "Yield",
  "image" : {
    "@type" : "ImageObject",
    "height" : 627,
    "url" : "https://cdn2.hubspot.net/hubfs/733513/social-suggested-images/Realized_Glossary_Graphic-2.jpg",
    "width" : 1200
  },
  "mainEntityOfPage" : "https://www.realized1031.com/glossary/yield",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60.0,
      "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png",
      "width" : 296.0
    },
    "name" : "Glossary of Terms"
  }
}
```