Rental Yield Calculator

✖Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year.ⓘ Annual Rental Income [ARI]			+10% -10%
✖Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.ⓘ Property Value [PV]			+10% -10%

✖Rental Yield is a financial metric used by real estate investors to evaluate the profitability of an investment property.ⓘ Rental Yield [RY]

⎘ Copy

👎

Formula

✖

Rental Yield

Formula

`"RY" = ("ARI"/"PV")*100`

Example

`"11.95829"=("50000"/"418120")*100`

Calculator

LaTeX

Reset

👍

Rental Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Rental Yield = (Annual Rental Income/Property Value)*100
RY = (ARI/PV)*100
This formula uses 3 Variables

Variables Used

Rental Yield - Rental Yield is a financial metric used by real estate investors to evaluate the profitability of an investment property.
Annual Rental Income - Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year.
Property Value - Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.

STEP 1: Convert Input(s) to Base Unit

Annual Rental Income: 50000 --> No Conversion Required
Property Value: 418120 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

RY = (ARI/PV)*100 --> (50000/418120)*100

Evaluating ... ...

RY = 11.9582894862719

STEP 3: Convert Result to Output's Unit

11.9582894862719 --> No Conversion Required

FINAL ANSWER

11.9582894862719 ≈ 11.95829 <-- Rental Yield

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Mortgage and Real Estate » Rental Yield

Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 10+ more calculators!

< 25 Mortgage and Real Estate Calculators

Monthly Mortgage Payment

Go Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)

Long Term Capital Gain

Go Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer

Short Term Capital Gain

Go Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer

Effective Gross Income

Go Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts

Net Rental Yield

Go Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100

Cost Approach Appraisal

Go Property Value = Reproduction Cost-Depreciation+Value of Land

Gross Potential Rent

Go Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent

Qualifying Ratio

Go Debt to Income Ratio = (Total Monthly Debt Payments/Gross Monthly Income)*100

Vacancy Rate

Go Vacancy Rate = (Vacant Units in the Building*100)/Total Units in the Building

70 Percent Rule

Go Maximum Buying Price = (After Repair Value*0.7)-Estimated Repair Costs

Gross Income Multiplier

Go Gross Income Multiplier = Property Sale Price/Effective Gross Income

Gross Rent Multiplier

Go Gross Rent Multiplier = Property Value/Potential Gross Rental Income

Gross Rental Income

Go Potential Gross Rental Income = Property Value/Gross Rent Multiplier

Loan to Value Ratio

Go Loan to Value Ratio = (Mortgage Amount/Appraised Property Value)*100

Price per Square Foot

Go Price per Square Foot = Property Sale Price/Total Square Footage

Gross Rental Yield

Go Gross Rental Yield = (Annual Rental Income/Property Value)*100

Price to Rent Ratio

Go Price to Rent Ratio = Median Home Price/Median Annual Rent

Down-Payment Amount

Go Down Payment Amount = Final Sale Price*Percentage Payment

Rental Yield

Go Rental Yield = (Annual Rental Income/Property Value)*100

Land to Building Ratio

Go Land to Building Ratio = Area of Land/Area of Building

Commission Value

Go Commission Value = Commission Rate*Final Sale Price

Floor Area Ratio

Go Floor Area Ratio = Gross Floor Area/Total Lot Size

Property Tax Rate

Go Property Tax Rate = Assessed Value*Mill Rate

Debt Ratio

Go Debt Ratio = Total Debt/Total Assets

Annual Rental Income

Go Annual Rental Income = Monthly Rental Income*12

Rental Yield Formula

Rental Yield = (Annual Rental Income/Property Value)*100
RY = (ARI/PV)*100

What is Rental Yield?

Rental Yield is typically expressed as a percentage and represents the annual income generated from renting out a property, relative to its purchase price or market value. To calculate rental yield, one typically divides the annual rental income by either the property's purchase price or its current market value, then multiplies the result by 100 to express it as a percentage. Rental yield provides investors with valuable insight into the profitability of a property, allowing them to compare different investment opportunities and make informed decisions. A higher rental yield indicates a more lucrative investment, while a lower yield may suggest lower profitability or potentially higher associated risks. However, it's important for investors to consider other factors such as operating expenses, vacancy rates, and potential capital appreciation when evaluating the overall financial viability of a property investment.

How to Calculate Rental Yield?

Rental Yield calculator uses Rental Yield = (Annual Rental Income/Property Value)*100 to calculate the Rental Yield, Rental Yield is a key metric used in real estate investment to assess the potential return on investment (ROI) generated from a property. Rental Yield is denoted by RY symbol.

How to calculate Rental Yield using this online calculator? To use this online calculator for Rental Yield, enter Annual Rental Income (ARI) & Property Value (PV) and hit the calculate button. Here is how the Rental Yield calculation can be explained with given input values -> 11.95829 = (50000/418120)*100.

FAQ

What is Rental Yield?

Rental Yield is a key metric used in real estate investment to assess the potential return on investment (ROI) generated from a property and is represented as RY = (ARI/PV)*100 or Rental Yield = (Annual Rental Income/Property Value)*100. Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year & Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.

How to calculate Rental Yield?

Rental Yield is a key metric used in real estate investment to assess the potential return on investment (ROI) generated from a property is calculated using Rental Yield = (Annual Rental Income/Property Value)*100. To calculate Rental Yield, you need Annual Rental Income (ARI) & Property Value (PV). With our tool, you need to enter the respective value for Annual Rental Income & Property Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search