Yield

Yield is an asset’s annual cash income divided by the capital you put in — a ₱1M placement paying ₱71,000 a year yields 7.1%. This course often restates yield in the ‘MRR lens’: monthly pesos per ₱1M deployed, the same unit an agency owner already prices contracts in. Yield measures the cash flow only; it says nothing about whether the asset’s value grows or shrinks underneath it.

First used in: 0.1 · What an asset actually is