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.