1. What is Property Yield?

Property yield, also known as rental yield, is a measure of the return on investment from a rental property. It shows the percentage of the property's value that is earned back each year through rental income.

2. How Does the Calculator Work?

The calculator uses the property yield formula:

Where:

• Annual Rental Income — Total yearly income from rent (before expenses)
• Property Value — Current market value or purchase price of the property

Explanation: The formula calculates what percentage of the property's value is earned back each year through rental income.

3. Importance of Yield Calculation

Details: Property yield helps investors compare different investment opportunities, assess property performance, and make informed decisions about buying or selling properties.

4. Using the Calculator

Tips: Enter the total annual rental income and the current property value in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a good property yield?
A: This varies by market, but generally 5-8% is considered good, with higher yields often indicating higher risk areas.

Q2: Does this include expenses?
A: No, this is gross yield. For net yield, subtract expenses from rental income before calculating.

Q3: Should I use purchase price or current value?
A: For investment analysis, current market value is typically used, but purchase price can show your personal return on investment.

Q4: How does yield compare to ROI?
A: Yield shows annual income return, while ROI (Return on Investment) considers both income and capital growth over time.

Q5: Are there limitations to yield calculations?
A: Yes, yield doesn't account for property appreciation, tax implications, or unexpected expenses.