🔑 Rental Yield Calculator
Calculate rental yield and annualized return on investment
Annual Rental Income
$24,000
Net Annual Income
$18,600
Price-to-Rent Ratio
1:150
Payback Period
16.1 years
Calculate rental yield and annualized return on investment
This calculator helps you determine the rental yield and annualized return on a property investment. Enter the property value and monthly rent to calculate the annual yield and assess the investment value.
International standard: A reasonable price-to-rent ratio falls between 1:200-1:300, with an annual yield of 4%-6% considered healthy. Below 3% suggests the property is overpriced or rent is too low.
Rental yield reference by market type:
- High-demand urban markets: 2%-4% (capital appreciation focus) - Mid-tier cities: 4%-6% (balanced approach) - Emerging markets: 6%-10% (income focus) - Student housing: 5%-8% - Commercial properties: 5%-9%
Major cities often have lower yields due to higher property prices, but may offer better capital appreciation. Consider both rental income and potential property value growth when evaluating an investment.