Rental property · net yield
Rental property · net yield: use property cost including acquisition fees, monthly rent, vacancy allowance. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
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Formula & explanation
Net yield = [12×rent×(1−vacancy/100)−annual expenses]/cost × 100
Variables & units
- Property cost including acquisition fees
- currency · minimum 0.01, maximum 1000000000000
- Monthly rent
- currency · minimum 0, maximum 1000000000000
- Vacancy allowance
- % · minimum 0, maximum 100
- Annual operating expenses
- currency · minimum 0, maximum 1000000000000
Worked example
200,000 cost, 1,500 monthly rent, 5% vacancy and 4,000 expenses gives 6.55%.
Assumptions
Unlevered operating yield; excludes finance, appreciation, sale costs and income tax.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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