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Rental Yield Calculator

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Gross yield6.60%
Net yield4.80%
Estimated NOIAED 120,000
Gross yield = annual rent ÷ purchase price. Net yield = (annual rent − annual operating costs) ÷ purchase price. Operating costs typically include service charges, maintenance, management fees and void periods. This is a planning tool, not a valuation.

See the full reasoning in ROI vs ROE: what investors should actually measure and the KISS method.

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Frequently asked questions

What is a good rental yield in Dubai?

It depends on the area and the property. Gross yields on the city-centre averages this site uses are well above London, New York, Singapore and Hong Kong, but what matters is net yield on the specific unit after service charges, management, maintenance and vacancy.

How do you calculate net rental yield?

Take annual rent, subtract operating costs such as service charges, management, a maintenance reserve and a vacancy allowance to get net operating income, then divide by the purchase price.

Why is net yield lower than the advertised yield?

Advertised yields are usually gross: rent divided by price. Net yield is typically 1.5 to 2.5 percentage points lower once real costs are counted.

Should I use asking rent or actual rent in the calculator?

Actual registered rent for the same building and unit type. Asking rents on portals often sit 10% to 25% above what tenants sign for.

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