Rental Yield Calculator
See how much a rental property returns each year compared with its value, before and after costs.
Updated
For information only — not financial, tax or legal advice. Verify rates and figures with your bank, FBR or another official source before making decisions.
Formula
Gross yield = (Monthly rent × 12) ÷ Property value × 100
Net yield = (Annual rent − Annual costs) ÷ Property value × 100
Gross yield is useful for quick comparisons. Net yield is closer to what you actually earn.
Examples
Rs 2 crore house, Rs 70,000 rent
Gross rental yield 4.2% · Net yield 4.2%
Rs 1.2 crore flat, Rs 55,000 rent, Rs 1 lakh costs
Gross rental yield 5.5% · Net yield 4.67%
Important information
- Yield ignores changes in property value. Total return = rental yield + price appreciation.
- Include vacancy (empty months), repairs, property tax and any agent fees in annual costs for a realistic net yield.
Frequently asked questions
What is a good rental yield in Pakistan?
Residential yields are often in the low-to-mid single digits. Compare with bank profit rates and expected price growth to decide if it is worthwhile.
What is the difference between gross and net yield?
Gross yield uses rent only. Net yield subtracts running costs such as maintenance, tax and vacancy.
Should I include the property's purchase costs?
For a precise figure, add transfer fees and taxes to the property value.
Is rental income taxable?
Yes, rental income is taxable in Pakistan. Check current FBR rules.
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