Gross yield
Annual rent ÷ purchase price × 100
080 · BUSINESS & FINANCE
Rental Yield Calculator
Compare gross and net rental yield using purchase price, deposit, monthly rent, owner-paid management cost, and loan interest.
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Enter owner-paid management only. Taxes, vacancy, acquisition/brokerage/repair costs, and loan principal repayment are excluded from this first version.
Gross rental yield6%Gross = annual rent ÷ purchase price × 100
Net rental yield · Reference design5.2%Net = (annual rent − annual management − annual loan interest) ÷ (purchase price − deposit) × 100
Invested capital150,000,000
Annual rental income12,000,000
Annual management cost1,200,000
Annual loan interest3,000,000
Annual income after listed costs7,800,000
Gross = annual rent ÷ purchase price × 100
Net = (annual rent − annual management − annual loan interest) ÷ (purchase price − deposit) × 100
HOW TO USE
How to use
- 01
Enter the purchase price and security deposit.
- 02
Enter monthly rent and owner-paid monthly management cost.
- 03
Enter loan interest and choose monthly or annual input.
- 04
Review gross yield, net yield, and invested capital together.
- 05
Check the cost breakdown and formulas, then copy the summary if needed.
- 06
Compare headline and practical yield while isolating the effects of deposit, maintenance costs, and loan interest.
RENTAL YIELD FORMULA
Rental yield guide
Invested capital
Purchase price − deposit
Management cost
Owner-paid monthly management × 12
Loan interest
Monthly input × 12; annual input unchanged
Net yield
(Annual rent − management − interest) ÷ invested capital × 100
First-version exclusions
Tax, vacancy, acquisition, brokerage, repairs, loan principal
IMPORTANT NOTES
Important notes
- Gross yield is a simple reference: annual rent divided by purchase price.
- Net yield is the reference design in the delivery specification: annual rent minus owner-paid management and loan interest, divided by purchase price minus deposit.
- The deposit is not treated as income; it reduces invested capital in this reference design.
- If the deposit is equal to or above the purchase price, net yield is not calculated.
- Taxes, vacancy, acquisition, brokerage, and repair costs are excluded from the first version.
- Loan principal repayment is excluded; only interest is treated as a listed cost.
- If acquisition tax, brokerage, vacancy, repairs, and income tax are omitted, the displayed return can look higher than real investment performance.
FAQ
Frequently asked questions
01What is the gross yield for a 200,000,000 purchase and 1,000,000 monthly rent?+
Annual rent is 12,000,000, so gross yield is 6%.
02How is a 50,000,000 deposit reflected?+
Invested capital is 200,000,000−50,000,000=150,000,000.
03Should all management fees be deducted?+
No. Enter only the portion paid by the owner.
04How is net yield calculated?+
Subtract annual owner-paid management and annual loan interest from annual rent, then divide by invested capital.