FREE Property Rental Yield Calculator
Want to know the property rental yield of your investment property?
This property rental yield calculator will calculate rental yield for you and allow you to compare rental yields across properties. In addition, a rental yield table based on different weekly rental incomes and property prices is included for your reference.
The property rental yield is a very important performance indicator of property investment. To calculate rental yield, you just divide the gross annual rental income by the purchase price (or the current property value). In rough terms, if the rental yield is 2-3% higher than the current home loan interest rates, the property is likely to be a positive cashflow one otherwise a negative gearing one.
Here is a rental yield calculation example: if a property with a purchase price of $300,000 is rented for $400 per week and 50 weeks per year, the rent yield is ($400×50)÷$300000 = 6.67%.
Here is a screen shot that will give you a better idea that what you need to do and what this free property rental yield calculator can tell you.
View full size image of FREE Property Rental Yield Calculator
View full size image of FREE Property Rental Yield Comparison Calculator
View full size image of FREE Property Rental Yield Table
You can use rental yields to compare and choose investment properties. For example, property 1 - with a purchase price of $300,000 is rented for $400 per week and 50 weeks per year VS property 2 - with a purchase price of $420,000 is rented for $500 per week and 49 weeks per year. The rent yield of property 1 is ($400×50)÷$300000 = 6.67%. The rent yield of property 2 is ($500×49)÷$420000 = 5.83%. Based on rental yield only, you should choose property 1 because its rental yield is higher.
We suggest to use net rental yield when comparing investment properties because the gross rental yield does not consider the costs of maintaining an investment property.
This free property rental yield calculator only calculate gross rental yield. If you want to calculate net rental yield, you should download the Free Investment Property Calculator.
A more rigorous approach is to include the home loan interest as well when calculating rental yield.
This calculator is built in Microsoft Excel worksheet. You need to have Microsoft Excel 2000-2010 and Microsoft Windows to use it. You may be able to use the calculator with other applications that can open and read XLS spreadsheets, but this has not been tested.
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Cost - Personal Use
Personal Use is Non-Commercial use by you for your own private use on your own personal computer.
Cost - Commercial Use
Commercial Use is any use in which a corporation or business or commercial entity derives or attempts to derive monetary gain and benefit from or for any third party, either directly or indirectly, from the use of the Calculator. This includes Government and Military entities, corporations, LLCs, sole-proprietorships, sole traders, home-based businesses, and internet-based businesses.
.xls - Excel Spreadsheet
Microsoft Excel® 2002(XP), 2003, 2007, 2010 for Microsoft Windows®
Microsoft Excel 2011 for Mac
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