How the calculator works
Inputs cover the variables that move yield: purchase price, target area, average daily rate, occupancy, and operating cost ratio. Outputs are gross yield, net yield after a managed-property cost stack (operator fee, maintenance, utilities, taxes, vacancy), and the implied annual cash return on capital. Yield bands per area are pulled from our editorial dataset of disclosed Bali transactions 2022–2026; the underlying spreadsheet feeds the price heatmap and quarterly market report.
What net yield looks like in practice
Gross-to-net spread for managed Bali villas in 2026 is typically 30–40 %, depending on operator quality, channel mix (direct booking vs OTA-heavy), and tax treatment. Self-managed properties can capture more of the gross but usually underperform managed equivalents on occupancy by 15–25 percentage points – operator quality dominates yield outcomes more than location does within the same area tier. The 35 % default cost ratio in this calculator reflects a well-run third-party-managed villa; budget 40–45 % for first-year operations or premium hospitality positioning.
When to trust the output
Yield bands are accurate within plus-or-minus two percentage points for the median asset class in each area; outliers exist in both directions. Trust the output for first-pass underwriting and portfolio-shape decisions; do not trust it for a specific listing without the asset’s own occupancy and ADR record. The calculator is most useful for comparing scenarios such as same budget across different areas, or same area across different ADR assumptions, to surface which lever moves your return most. For decision support beyond yield, see the portfolio simulator and leasehold calculator.
What the output does not factor in
Currency exposure is excluded by design – yields here are quoted in USD against IDR-denominated revenue, but rupiah movement of plus-or-minus three percent annually changes the net USD figure materially over a five-year hold. Capital appreciation is also excluded; this calculator focuses on income return. Total return on a Bali villa typically blends the calculator’s net yield figure with five to nine percent annual capital appreciation, depending on area. Read the price guide for the appreciation side of the picture.