About this Net Rental Yield Calculator
This calculator is designed to show the Net Rental Yield of an investment property shown as a percentage. Individuals who invest in direct property often purchase the property with a mortgage. In this calculator the interest is not deducted as an expense in order to compare against the borrowing costs. If the net rental yield is higher than the borrowing cost then it is showing a positive return. Direct property investing offers two returns: Rental Income and Capital growth of the property (neither is guaranteed).
How to use the calculator:
- Purchase price: the price paid for the property, including deposit (no commas required)
- Purchase costs: additional associated buying costs (stamp duty, legal fees etc.) (no commas required)
- Monthly rent: Gross monthly rent (no commas required)
- Monthly expenses: Gross monthly expense i.e. insurance etc. (do not include the mortgage cost) (no commas required)
- Click calculate: The percentage yield will represent the return on the investment.