Portfolio Yield
Calculate blended portfolio yield, gearing and net cash flow across holdings.
Introduction
Who this is for: Investors with several properties assessing overall performance.
Why it matters: Portfolio yield must be value-weighted, not a simple average. A large low-yielding asset can drag the blend far below what an unweighted average suggests, and gearing changes the return on equity entirely.
Typical scenario: An investor with three properties wants a single blended figure and their true return on equity.
- Averaging individual yields without weighting by value.
- Reporting yield on value while ignoring the debt against it.
- Confusing yield on cost with yield on current value — they diverge as values move.
Inputs
Property 1
Property 2
Property 3
Debt Cost
Analysis
Across £965,000 of assets producing £64,000, the portfolio yields 6.63%. After debt costs, net cash flow is £40,240 against £525,000 of equity — a return on equity of 7.66%. Gearing at 45.6% LTV is amplifying that return, and would amplify losses equally.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Live Results
Portfolio Yield
6.63%
Return on Equity
7.66%
Total Value
£965,000
Net Cash Flow
£40,240