1. What is Rental Property Yield?

Rental yield is a measure of the return on investment for a rental property, expressed as a percentage of the property's value. It helps investors compare the profitability of different properties.

2. How Does the Calculator Work?

The calculator uses the rental yield formula:

Where:

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

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

3. Importance of Yield Calculation

Details: Rental yield is crucial for property investors to assess investment performance, compare properties, and make informed buying decisions.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is a good rental yield?
A: Generally, 5-8% is considered good, but this varies by location and property type. Higher yields often come with higher risks.

Q2: Should I include expenses in the calculation?
A: This calculates gross yield. For net yield, subtract expenses from annual rent before calculating.

Q3: How does yield differ from ROI?
A: Yield measures annual income return, while ROI (Return on Investment) considers both income and capital growth over time.

Q4: Why is yield percentage important?
A: It standardizes returns regardless of property price, allowing comparison between different properties and markets.

Q5: How often should I recalculate yield?
A: Recalculate when rental income changes or property value significantly changes to maintain accurate investment analysis.