Commercial Investment Yield Calculator

Commercial Investment Yield Calculator helps compare Korea-related property income, yield, purchase cost, and holding-period scenarios in English.

Commercial investment yield calculator

Uses the Korean commercial-property yield model for purchase price, rent, vacancy, VAT refund, acquisition tax, brokerage, holding cost, loan interest, sale scenario, cash-on-cash yield, and risk grade.

Korean source inputs

Total acquisition cost

₩527,350,000

Purchase price plus tax, registration, brokerage, VAT, and additional cost.

VAT refund

₩30,000,000

Building portion VAT refund if registered.

Net yield

1%

Gross yield 5%.

Equity ROE

2%

Grade D.

Monthly net income

₩453,667

After vacancy, holding cost, and finance cost.

Break-even vacancy

32.7%

Vacancy rate where annual net income reaches zero.

This English calculator calls the same pure real-estate calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic stub.

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Commercial investment yield calculator

This English article translates the Korean commercial-property investment yield calculator for acquisition cost, VAT refund, holding cost, vacancy, loan leverage, rent growth, and exit analysis.

Acquisition cost and VAT

The Korean model includes purchase price, acquisition tax, local education tax, rural special tax, registration cost, brokerage, building VAT, VAT refund, and additional cost. VAT is based on the building portion, so the land ratio matters.

VAT registration can materially reduce net cash outlay when a refund is available, but it also creates compliance and future tax obligations. The result separates total acquisition cost from VAT refund so the investor can see cash needed before and after refund.

Yield mechanics

Gross yield uses annual rent against purchase price. Net yield deducts vacancy loss, management cost, repair, insurance, management commission, and loan interest. Equity ROE then measures return on the cash actually invested after loan and deposit effects.

The Korean calculator also reports break-even loan rate and break-even vacancy. These two numbers are important because a property that looks profitable at today rate can turn negative when loan rate or vacancy increases.

Scenario reading

Vacancy sensitivity and rent-increase trend are not decoration; they show whether the deal survives weak leasing conditions. A first-floor neighborhood unit with VAT refund and stable rent behaves differently from an upper-floor commercial complex unit with high vacancy.

When sale analysis is enabled, expected sale price, holding period, appreciation, long-term deduction, capital gains tax, brokerage, cumulative rental income, total profit, total yield, and annualized yield are combined into a full holding-period view.