Rental yield calculator
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Your details
Net yield
5.50%
Gross yield 10.50%
- Net income per year
- R66 060.00
How we worked it out
- Rent for a full yearR126 000.00
12 × monthly rent
- Gross yield10.50%
Annual rent ÷ purchase price
- Rent actually collectedR115 500.00
After 1 month(s) vacant
- Owner costs per year−R49 440.00
Levies, rates, insurance, maintenance and agent fees of R9 240.00
- Net income before bond and taxR66 060.00
- Net yield5.50%
Net income ÷ purchase price
- Rental income is taxable. Deductible costs and your tax rate change the real return; this calculator works before tax.
Costs people forget
- Empty months between tenants, and the cost of finding a new tenant.
- Repairs between tenancies, and replacing appliances you supply.
- Transfer duty and fees when you buy, which raise your real outlay. Our sister site RandRight has a transfer duty calculator.
Thinking about tenants' side? Try the rent affordability calculator.
Frequently asked questions
What is the difference between gross and net yield?
Gross yield is a year's rent divided by the purchase price. Net yield subtracts the owner's costs (levies, rates, insurance, maintenance, agent fees) and empty months first, so it is the better measure of the real return.
Is the yield before or after tax?
Before tax. Rental income is added to your taxable income, and allowable expenses such as rates, levies, repairs and bond interest reduce it. Your tax rate changes the after-tax return.
Should I include the bond?
Yield is measured on the property's price, so the bond is left out of the yield. Add the bond repayment to see whether the rent covers your monthly costs (cash flow).
What vacancy allowance should I use?
Use your own experience or local letting agents' figures. One month a year is a cautious allowance for a well-priced property; it varies by area and season.