Skip to content

Rental yield and payback calculator

Weighing up a property as an investment? Enter its price and the monthly rent it can earn; the yearly yield and how long it takes to pay for itself appear right away.

Calculator

Costs the landlord pays, such as building fees (aidat) and upkeep.

Enter the price and the monthly rent to see the result.

Rent increases, empty months, taxes and purchase costs are not taken into account.

How is it calculated?

  1. Enter the property's price and the monthly rent it can earn.
  2. Add the monthly costs the landlord pays (building fees, upkeep), if any.
  3. The gross and net yearly yield and the payback period are calculated.
Formula

Gross yield = Monthly rent × 12 ÷ Price × 100

Net yield = (Monthly rent − Monthly costs) × 12 ÷ Price × 100

Payback = Price ÷ (Monthly rent − Monthly costs), in months

Frequently asked questions

What is the difference between gross and net yield?

Gross yield compares only the yearly rent with the price. Net yield first deducts the monthly costs the landlord pays (building fees, upkeep).

What does the payback period mean?

How many years the rent left after costs takes to add up to the price. This tool does not account for rent increases or empty months.

Are title deed costs included?

No, only the price you enter is used. You can see purchase costs in the title deed fee calculator.

Results are for information only; they are not legal or financial advice.

Looking for an investment property? See our opportunity listings →

Other calculators

All calculators →

Related guides