Rental Yield Calculator
Works out the gross and net rental yield of a property from the monthly rent, the property value and annual expenses.
Recent
Formula
How the calculation works
The annual rent is the monthly rent multiplied by twelve, which is the income the property produces in a year before any costs.
Gross yield divides that annual rent by the property value and multiplies by one hundred, giving the simple return on the purchase price.
Net yield first subtracts annual expenses such as maintenance, tax and vacancies from the rent, so it reflects what the owner actually keeps.
Common mistakes
- Quoting gross yield as profit ignores maintenance, tax and vacant months, so the real net return is almost always lower.
- Using the market price instead of the total cost including registration and renovation understates the yield you truly earn.
When to use it
- Use it to compare two properties for investment by their net yield rather than the headline rent alone.
- Use it to check whether a rental return beats a fixed deposit before you commit capital to a property.
Worked example
A 3,000,000 taka flat rented at 20,000 taka a month with 60,000 taka of expenses gives a gross yield of 8 percent and a net yield of 6 percent.
Common questions
Which yield should I rely on, gross or net?
Net yield is the honest figure for an investor because it already removes maintenance, tax and vacancy loss, while gross yield is only a quick first screening number.
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