# Yield On Cost Calculator

Introduction

In the realm of financial analysis, understanding the yield on cost (YOC) is crucial for investors. YOC is a metric that calculates the annual dividend income relative to the initial investment cost. This article delves into the concept of YOC, providing insights on its calculation and usage.

**How to Use**

To utilize the YOC calculator provided below, follow these steps:

- Input the initial investment cost.
- Enter the annual dividend income.
- Click the “Calculate” button to obtain the YOC result.

**Formula**

The formula for calculating Yield on Cost (YOC) is:

**Example Solve**

Let’s consider an example: Initial Investment Cost = $10,000 Annual Dividend Income = $500

Using the formula:

Therefore, the Yield on Cost is 5%.

**FAQs**

**Q: What is Yield on Cost (YOC)?**

**A:** Yield on Cost (YOC) is a financial metric that measures the dividend income generated relative to the initial investment cost. It signifies the percentage return on investment based on the original purchase price.

**Q: How is YOC calculated?**

**A:** YOC is calculated by dividing the annual dividend income by the initial investment cost, then multiplying the result by 100% to express it as a percentage.

**Q: Why is YOC important for investors?**

**A:** YOC provides investors with insights into the long-term income generated by their investments. It helps assess the effectiveness of dividend-paying stocks in generating returns over time.

**Conclusion**

Yield on Cost (YOC) is a valuable metric for investors seeking to evaluate the performance of dividend-paying investments. By understanding how to calculate and interpret YOC, investors can make informed decisions regarding their investment portfolios.