Rental yield calculator

Rental yield measures the annual return you earn from a property compared to its value. It helps investors understand how well a property performs as an income-generating asset.

Gross Yield

Gross Yield shows the annual rental income as a percentage of the property’s purchase price.

Formula:
(Annual Rent ÷ Property Value) × 100

Example:
If a property costs R200,000 and generates R12,000 per year in rent:
(12,000 ÷ 200,000) × 100 = 6% Gross Yield

This gives a simple snapshot of potential return before any costs are taken into account.

Net Yield

Net Yield gives a more realistic view by factoring in running costs such as maintenance, insurance, management fees, and other expenses.

Formula:
((Annual Rent – Annual Costs) ÷ Property Value) × 100

Example:
If that same property has R2,000 in annual costs:
((12,000 – 2,000) ÷ 200,000) × 100 = 5% Net Yield

This figure provides a clearer picture of your actual profit after expenses.

How to use the calculator

1. Enter the property’s purchase price.

2. Add the expected monthly or annual rent.

3. Include estimated annual costs (for maintenance, insurance, etc.).

4. Include expected vacancy rate.

5. Instantly see your Gross Yield and Net Yield.