This paper presents a simple but valid loss calculation method of grid-connected photovoltaic system based on normalized yield model. The proposed method can be represented as a quantitative value for five losses and performance of grid-connected photovoltaic system with three years monitored data. These results will indicate that it is useful to investigate various loss factors causing the performance obstruction, enhance the lifetime yield for changing meteorological conditions, and determine the optimal design and performance improvement of grid-connected photovoltaic system.