Rental Yield Calculator
Find the gross rental yield of a property — free, instant.
Filtering Properties Before the Deep Research Begins
Looking at every property on a shortlist in full detail — expenses, financing terms, appreciation potential — takes real time. Gross rental yield is the fast first filter: one percentage that puts a property's asking price against its rental income potential, so weaker options can be set aside before deeper due diligence starts on the rest.
Getting a Yield Figure
- Enter the property value: The purchase price or current market value.
- Enter expected monthly rent: A realistic figure based on comparable local listings.
- Calculate: Get annual rental income and gross yield as a percentage instantly.
The Math Behind the Percentage
Monthly rent is multiplied by 12 to get annual rental income, then that figure is divided by the property value and multiplied by 100 to express it as a percentage. This is the standard gross yield formula used across real estate investment analysis — it deliberately ignores expenses to give a quick, comparable headline figure across different properties, rather than a fully loaded net return.
Worked Example: An 8,500,000 Property
Take a property valued at PKR 8,500,000 with an expected monthly rent of PKR 35,000. Annual rental income comes to PKR 420,000. Divided by the property value, that's a gross rental yield of 4.94%. Compare this to a second property priced at PKR 6,000,000 renting for the same PKR 35,000 monthly — its gross yield works out to 7%, meaningfully higher despite the lower purchase price, which is exactly the kind of comparison this calculator is built to surface quickly across a shortlist.
Where a Quick Yield Screen Gets Used
Property investors run several potential purchases through this calculator side by side before deciding which ones deserve a proper site visit and deeper financial analysis. Real estate agents use it during a viewing to give a client an instant sense of a property's rental return potential. First-time landlords use it to sanity-check whether an asking price is reasonable relative to achievable local rent. Buy-to-let investors screening a long list of listings use gross yield as the first cut before shortlisting a handful for in-person viewing.
Reading a Yield Number Correctly
Gross yield deliberately says nothing about maintenance costs, property tax, insurance, management fees, or vacancy periods — all of which reduce the actual return a property delivers. For a more complete picture, subtract a year's worth of these expenses from the annual rental income before dividing by property value, which gives net yield rather than gross. What counts as a "good" yield also varies significantly by city, neighborhood, and property type, so always compare a calculated figure against typical rates for that specific local market rather than a fixed universal benchmark. A yield that looked attractive a year or two ago can also shift meaningfully as local rents or property values move, so treat any single calculation as a snapshot rather than a permanent verdict on a property.
What This Number Doesn't Tell You
A high gross yield on its own doesn't guarantee a good investment — it can reflect either genuinely strong rental demand or a property priced low because of a less desirable location, condition issues, or a market where property values are stagnant while rents happen to be relatively high. Gross yield also says nothing about capital appreciation potential, which for many investors matters as much as, or more than, rental income alone.
Yield Alongside Financing
Gross yield gets more useful once it's compared against the cost of financing the purchase. A property yielding 5% gross bought entirely in cash reads very differently from the same property bought with a mortgage carrying a 12% interest rate — in the second case, rental income alone won't cover the loan's interest cost, meaning the investment relies on capital appreciation or additional cash flow to make sense rather than rental income alone. Running a property's yield figure alongside the Property Loan EMI & Mortgage Calculator gives a fuller picture of whether a specific deal actually cash-flows once financing costs are part of the equation, rather than looking at rental return in isolation.
Calculated On Your Device
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Why do two properties with the same rent have very different yields?
Because yield is rent relative to property value; a lower-priced property earning the same rent produces a mathematically higher yield percentage.
What's a realistic gross yield to expect in a typical residential market?
This varies widely by city and property type, commonly ranging from around 3-4% in high-value urban markets to 7% or more in lower-cost areas; check local comparables for an accurate benchmark.
How do I convert gross yield into net yield manually?
Subtract your estimated annual expenses — maintenance, tax, insurance, management fees, and expected vacancy — from annual rental income, then divide by property value and multiply by 100.
Does a higher yield always mean a better investment?
Not necessarily — a high yield can reflect a lower-priced property in a less desirable area, or one with limited appreciation potential; use yield alongside other factors, not alone.
Should I use asking price or recent market valuation for the property value?
Use whichever figure you're actually basing your decision on; for a purchase decision, use the negotiated or asking price rather than an outdated valuation.
Can gross rental yield be used to compare properties in different cities?
Technically yes, since it's a simple percentage, but be cautious — typical yield benchmarks differ significantly by city, so a "high" yield in one market may be average in another.