Rental Yield Calculator
Calculate your rental yield to understand your property's profitability.
What is Rental Yield?
Rental yield is a crucial metric for property investors, representing the return on investment (ROI) from rental income. It is calculated as a percentage by dividing annual rental income by the property's cost.
Why is Rental Yield Important?
- Helps assess profitability before purchasing a property.
- Useful for comparing different real estate investment options.
- Indicates cash flow potential for landlords.
FAQs
How do I calculate rental yield?
Rental yield is calculated as (Annual Rental Income / Property Price) × 100. Use our calculator above for quick results.
What is a good rental yield?
Rental yields vary by location and market conditions. Generally, a yield above 5% is considered good, while high-demand areas may have lower yields.
Does rental yield include expenses?
No, rental yield does not account for expenses like maintenance, taxes, or property management fees. For a more accurate profit analysis, consider net rental yield.
Is rental yield the only factor to consider?
No, property appreciation, tenant demand, and local real estate trends also impact investment decisions.
