1. What is Rental Yield?

Rental Yield is a metric used to evaluate the return on investment for rental properties. It represents the annual rent as a percentage of the property's value, helping investors compare different properties.

2. How Does the Calculator Work?

The calculator uses the Rental Yield formula:

Where:

• Annual Rent — Total yearly rental income (in currency)
• Property Value — Current market value of the property (in currency)

Explanation: The formula calculates what percentage of the property's value is earned back each year through rent.

3. Importance of Rental Yield Calculation

Details: Rental yield helps investors assess property performance, compare different investment opportunities, and make informed decisions about buying or selling rental properties.

4. Using the Calculator

Tips: Enter the total annual rent and current property value in the same currency. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good rental yield percentage?
A: Generally, 5-8% is considered good, but this varies by location and property type.

Q2: Should I use purchase price or current value?
A: For accurate current yield, use the property's current market value.

Q3: Does this include expenses?
A: No, this is gross yield. Net yield would deduct expenses like maintenance and taxes.

Q4: How often should I calculate rental yield?
A: Recalculate annually or when rent changes significantly or property value changes.

Q5: Is higher yield always better?
A: Not necessarily - very high yields may indicate higher risk or lower appreciation potential.