Rental Yield Calculator
Real Estate
What is the Rental Yield Calculator?
The Rental Yield Calculator measures the return on investment (ROI) a property generates purely from rental income. It is the most critical metric for real estate investors.
How it Works
The calculator takes your property value and monthly rent, annualizes the rent, and divides it by the property's total cost to give you a clear percentage yield.
The Mathematical Formula
Gross Rental Yield = (Monthly Rent × 12) / Property Value × 100
Key Benefits
- Compare Assets: Compare a 3% yielding apartment with a 7% yielding fixed deposit.
- Pricing Accuracy: Helps landlords ensure they aren't undercharging for rent based on the capital value of their asset.