This page contains all property investment tools that I built or used along with my investment journey.

Important Terms

• gross/net yield: the remaining profit

Rental Yield Calculator

Rental Yield - a measure used in real estate to assess the potential profitability of an income-generating property.

key points:

• annual returns from a property
• expressed as a percentage
• short explanation: how much money you take home once you’ve covered the investment property expenses

2 types of rental yield: Gross Rental Yield and Net Rental Yield:

1. Gross Rental Yield: This is calculated by taking the total annual rental income and dividing it by the property’s current market value, then multiplying by 100 to get a percentage. It gives a preliminary idea of the return on investment, but it does not take into account any costs associated with maintaining the property.

Formula: total income (e.g. rent) / property_value * 100

2. Net Rental Yield: This is a more accurate measure of profitability as it takes into account the operating costs of a property, such as rates, insurance, and maintenance. It is calculated by subtracting the annual expenses from the annual rent, dividing the result by the property value, and then multiplying by 100.

Formula: (total income (e.g. rent) - total expenses (e.g. rate)) / property_value * 100

These calculations provide a way for property owners to compare their returns with the market average and adjust their income or expenses accordingly.

⭐ rental yields are just estimates and the actual yield can depend on various factors such as location, type of property, rental market conditions, and rental prices in the area