How the rental yield calculator works
Last updated 10 November 2026
Rental yield is a quick way to compare properties. It tells you what the rent earns each year as a share of what the property costs.
How it works
- Gross yield = monthly rent × 12 ÷ price.
- Net income = rent collected (allowing for empty months) minus the year’s costs.
- Net yield = net income ÷ price.
Worked example
With the starting figures:
- Rent for a year is R 132 000, a gross yield of 8.80%.
- After empty months and costs of R 30 000, net income is R 91 000.
- Net yield is 6.07%.
What yield tells you
Rental yield is a quick way to compare properties. It shows what the rent earns each year as a share of what the property costs. A higher yield means more rent for each rand of price, before considering the risk and the costs.
Gross and net yield
Always compare properties on the same basis. A listing that quotes gross yield looks better than one that quotes net yield for the same property.
- Gross yield: yearly rent divided by the price. It ignores costs and empty months.
- Net yield: yearly income after empty months and costs, divided by the price. It is closer to what you keep.
Costs to count
- Rates, levies and insurance
- Repairs and maintenance
- The agent's letting fee
- Months with no tenant, which the calculator allows for
- Tax on the rental income, which is not included
What yield does not say
Yield ignores growth or fall in the property's value, and it ignores how the property is financed. A high yield can come with higher risk, such as a weaker area or more empty months. Yield is not the same as return on your own money if you have a bond, because interest is a large cost that the yield does not include.
Related tools
See the home ownership cost calculator and the bond repayment calculator for the cost side. The starting figures are examples. Nothing you enter is stored.
Comparing two properties
Run the same inputs for each property: the price, the monthly rent, the yearly costs and the number of empty months you allow for. Compare the net yields side by side. If one looks much better, check why. It may be the area, the type of tenant or higher costs that the listing leaves out.
Things to watch
- Use realistic costs: rates, levies, insurance, repairs and the agent’s fee.
- A high yield can come with higher risk, such as a weaker area or more empty months.
- Yield ignores any growth or fall in the property’s value.
Tools for this: home ownership cost calculator. Read the full disclaimer.