Property Rental Yield and Payback Calculator
Calculate the annual yield and payback period from the property price and rent.
This calculation provides an estimated result; current regulations and official calculations prevail. For binding transactions, consult your financial advisor or the relevant institution.
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Result
%5,4
Annual rental yield: %5,4
Result in all units
Step-by-step solution
What Is Rental Yield?
Rental yield is the ratio of a property's annual rental income to its purchase price. It shows in how many years the investment will pay for itself and how efficient the return is.
How is it calculated?
How Is Rental Yield Calculated?
Annual yield (%) = (annual rent ÷ purchase price) × 100
- Enter the monthly rent and the property price.
- Annual rent = monthly rent × 12.
- Payback period = price ÷ annual rent.
Frequently Asked Questions
What is a good rental yield ratio?
It varies by region and market; the higher the ratio, the faster the investment pays for itself.