Gross Rental Yield Calculator

✖Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year.ⓘ Annual Rental Income [ARI]			+10% -10%
✖Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.ⓘ Property Value [PV]			+10% -10%

✖Gross Rental Yield is a measure of annual rental income relative to property cost, expressed as a percentage.ⓘ Gross Rental Yield [GRY]

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Formula

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Gross Rental Yield

Formula

`"GRY" = ("ARI"/"PV")*100`

Example

`"11.95829"=("50000"/"418120")*100`

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Gross Rental Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Gross Rental Yield = (Annual Rental Income/Property Value)*100
GRY = (ARI/PV)*100
This formula uses 3 Variables

Variables Used

Gross Rental Yield - Gross Rental Yield is a measure of annual rental income relative to property cost, expressed as a percentage.
Annual Rental Income - Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year.
Property Value - Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.

STEP 1: Convert Input(s) to Base Unit

Annual Rental Income: 50000 --> No Conversion Required
Property Value: 418120 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

GRY = (ARI/PV)*100 --> (50000/418120)*100

Evaluating ... ...

GRY = 11.9582894862719

STEP 3: Convert Result to Output's Unit

11.9582894862719 --> No Conversion Required

FINAL ANSWER

11.9582894862719 ≈ 11.95829 <-- Gross Rental Yield

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 25+ more calculators!

< 20 Mortgage and Real Estate Calculators

Long Term Capital Gain

Go Long Term Capital Gain = Final Sale Price-Indexed Cost of Acquisition-Indexed Cost of Improvement-Cost of Transfer

Short Term Capital Gain

Go Short Term Capital Gain = Final Sale Price-Cost of Acquisition-Home Improvement Cost-Cost of Transfer

Effective Gross Income

Go Effective Gross Income = Potential Gross Rental Income+Other Income-Allowances for Vacancies and Bad Debts

Net Rental Yield

Go Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100

Cost Approach Appraisal

Go Property Value = Reproduction Cost-Depreciation+Value of Land

Gross Potential Rent

Go Gross Potential Rent = Number of Units Available for Rent*Annualised Market Rent

Qualifying Ratio

Go Debt to Income Ratio = (Total Monthly Debt Payments/Gross Monthly Income)*100

Vacancy Rate

Go Vacancy Rate = (Vacant Units in the Building*100)/Total Units in the Building

Equity Build up Rate

Go Equity Build Up Rate = Year One Equity Build Up/Year Capital Expenses

Gross Income Multiplier

Go Gross Income Multiplier = Property Sale Price/Effective Gross Income

Gross Rental Income

Go Potential Gross Rental Income = Property Value/Gross Rent Multiplier

Cash on Cash Return

Go Cash on Cash Return = (Net Operating Income/Total Cash Invested)*100

Net Operating Income

Go Net Operating Income = Total Property Revenue-Operating Expenses

Gross Rental Yield

Go Gross Rental Yield = (Annual Rental Income/Property Value)*100

Down-Payment Amount

Go Down Payment Amount = Final Sale Price*Percentage Payment

Rent to Cost Ratio

Go Rent to Cost Ratio = Monthly Rental Income/Property Value

Assessed Value

Go Assessed Value = Assessment Market*Market Value

Property Tax Rate

Go Property Tax Rate = Assessed Value*Mill Rate

Annual Rental Income

Go Annual Rental Income = Monthly Rental Income*12

1 Percent Rule

Go Minimum Monthly Rent = 0.01*Purchase Price

Gross Rental Yield Formula

Gross Rental Yield = (Annual Rental Income/Property Value)*100
GRY = (ARI/PV)*100

What is Gross Rental Yield ?

Gross rental yield is a financial metric used in real estate investment to evaluate the profitability of a rental property. It is calculated by dividing the property's annual rental income by its total property cost (including purchase price and any additional costs such as renovations or closing fees), and then multiplying by 100 to express the result as a percentage. Essentially, gross rental yield shows the percentage return on investment that an investor can expect to receive from rental income alone, without factoring in expenses like property taxes, maintenance, or vacancies. Investors use gross rental yield as a quick way to compare the potential income-generating capabilities of different properties and assess their attractiveness as investment opportunities. A higher gross rental yield typically indicates a more favorable investment, but it's important to consider other factors such as location, market trends, and potential for property appreciation.

How to Calculate Gross Rental Yield?

Gross Rental Yield calculator uses Gross Rental Yield = (Annual Rental Income/Property Value)*100 to calculate the Gross Rental Yield, The Gross Rental Yield is a measure of annual rental income relative to property cost, expressed as a percentage. Gross Rental Yield is denoted by GRY symbol.

How to calculate Gross Rental Yield using this online calculator? To use this online calculator for Gross Rental Yield, enter Annual Rental Income (ARI) & Property Value (PV) and hit the calculate button. Here is how the Gross Rental Yield calculation can be explained with given input values -> 11.95829 = (50000/418120)*100.

FAQ

What is Gross Rental Yield?

The Gross Rental Yield is a measure of annual rental income relative to property cost, expressed as a percentage and is represented as GRY = (ARI/PV)*100 or Gross Rental Yield = (Annual Rental Income/Property Value)*100. Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year & Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.

How to calculate Gross Rental Yield?

The Gross Rental Yield is a measure of annual rental income relative to property cost, expressed as a percentage is calculated using Gross Rental Yield = (Annual Rental Income/Property Value)*100. To calculate Gross Rental Yield, you need Annual Rental Income (ARI) & Property Value (PV). With our tool, you need to enter the respective value for Annual Rental Income & Property Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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