What is rental yield?

Rental yield is annual rent as a percentage of property value. Gross yield = Annual rent ÷ Property value × 100.

How do I calculate net rental yield?

Net yield = (Annual rent − taxes − maintenance − insurance − vacancy − society/management costs) ÷ Property value × 100.

For yield, EMIs are financing cash flows and typically excluded. For overall ROI, include EMI interest, principal, and loan costs in cash-flow IRR.

Apply a vacancy rate to reduce annual rent and treat refundable deposits as neutral unless they earn interest or incur opportunity cost.

Yield measures rental income only. Total return adds price appreciation, tax effects and financing to show overall ROI/IRR.

Property Value

Monthly Rental Income

Annual Expenses (%)

Property Value

Total Rental Income

Total Expenses

Net Annual Income

Annual Rental Yield

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