Rental yield calculator
Work out the return a rental property gives you, before and after running costs.
- Gross rental yield
- Rent received in a year
- Left after costs in a year
This calculator gives an estimate only, for general information. It isn't financial, tax or legal advice. Your bank, attorney, SARS or a tax practitioner confirms the final amounts.
How this is worked out
Gross yield is a full year's rent divided by the purchase price.
Net yield is more realistic. It takes the rent for the months the property is let, less the agent's fee and your running costs, and divides that by the purchase price.
Neither figure includes bond repayments, tax on rental income, repairs or any change in the property's value.
Questions people ask
What is a good rental yield?
It depends on the area, the type of property and how much you expect its value to grow. Compare net yields on similar properties, and with what you could earn elsewhere with similar risk.
Is rental income taxed?
Yes. Rental income is added to your taxable income, and you can generally deduct expenses such as bond interest, rates, levies and repairs. A tax practitioner can help you with this.
Should I include my bond repayment?
Yield compares properties regardless of how you pay for them, so it leaves the bond out. To see your monthly cash flow, take your bond repayment from what's left after costs.