What is Rental Yield?
Rental Yield is typically expressed as a percentage and represents the annual income generated from renting out a property, relative to its purchase price or market value. To calculate rental yield, one typically divides the annual rental income by either the property's purchase price or its current market value, then multiplies the result by 100 to express it as a percentage. Rental yield provides investors with valuable insight into the profitability of a property, allowing them to compare different investment opportunities and make informed decisions. A higher rental yield indicates a more lucrative investment, while a lower yield may suggest lower profitability or potentially higher associated risks. However, it's important for investors to consider other factors such as operating expenses, vacancy rates, and potential capital appreciation when evaluating the overall financial viability of a property investment.
How to Calculate Rental Yield?
Rental Yield calculator uses Rental Yield = (Annual Rental Income/Property Value)*100 to calculate the Rental Yield, Rental Yield is a key metric used in real estate investment to assess the potential return on investment (ROI) generated from a property. Rental Yield is denoted by RY symbol.
How to calculate Rental Yield using this online calculator? To use this online calculator for Rental Yield, enter Annual Rental Income (ARI) & Property Value (PV) and hit the calculate button. Here is how the Rental Yield calculation can be explained with given input values -> 11.95829 = (50000/418120)*100.