Rental yield is the annual rental income expressed as a percentage of the property's purchase price. It helps investors understand the return they can expect from rental properties.
Formula used:
Rental Yield (%) = (Annual Rent / Purchase Price) × 100
It helps evaluate the profitability of an investment property by comparing rental income to the purchase cost.
Generally, a rental yield of 6% or higher is considered good, but it depends on location and market conditions.
This calculator uses gross rental yield, which does not account for expenses like maintenance, taxes, or vacancies.