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Rental Yield Calculator

Calculate the gross annual rental yield on an investment property.

Reviewed by The QuickCalc Editorial Team · Last updated · About our methodology

Enter your details

Result

Gross rental yield
9,50%
Annual rent
R114 000,00

Inputs & results at a glance

Updates live as you change the form above.

ItemTypeValue
Property priceInputR1 200 000,00
Monthly rentInputR9 500,00
Annual rentResultR114 000,00
Gross rental yieldResult9,50%

About this calculator

Yield = (monthly rent × 12) ÷ property price × 100.

Rental yield is the headline return on an investment property, expressed as a percentage of the purchase price. This calculator works out gross yield using the simple formula yield = (monthly rent × 12) / property price × 100. It's the first metric most South African landlords use to compare opportunities.

A healthy gross yield in South Africa is typically in the 7–10% range, although that varies by city, suburb and property type. Sectional title flats in well-located rental nodes often achieve higher yields than freehold homes in family suburbs, where capital growth tends to do more of the work.

Gross yield is a starting point, not the full picture. To get a true sense of profitability, deduct levies, rates, insurance, vacancy allowance, maintenance and bond interest from the annual rent to get net yield. Use this calculator alongside our Bond Calculator to test whether the rent will cover your monthly bond instalment.

How to use it

  1. 1Enter the property price. Use the purchase price including transfer costs if you want a more conservative figure.
  2. 2Enter the monthly rent. Use the realistic market rent, not your asking price.
  3. 3Compare the yield. Aim for 7–10% gross in most South African rental markets.

How it works

Gross rental yield is the simplest way to compare the income potential of two investment properties. The calculator annualises the monthly rent (rent × 12), divides that by the purchase price and expresses the result as a percentage. Because it uses the sticker price and gross rent, the answer is directly comparable across suburbs, provinces and property types — but it is deliberately optimistic. It does not deduct the costs of actually owning and letting the property.

To turn gross yield into net yield you need to subtract everything the property costs you in a year: sectional title levies or complex fees, municipal rates, buildings insurance, monthly maintenance provision, agent management fees, a realistic vacancy allowance (typically one month per year) and, if you have a bond, the interest portion of the instalment. In practical terms, a South African rental with a 9% gross yield can easily settle at a 4-5% net yield once all costs are subtracted, which is still comparable with many other passive income streams.

Formula

Gross yield % = (Monthly rent × 12) ÷ Purchase price × 100

Monthly rent = market rent achievable, not asking price; Purchase price = amount paid for the property (some investors add transfer costs for a more conservative figure).

Worked examples

R1,200,000 flat, rent R9,500/month

Annual rent R114,000 ÷ R1,200,000 = 9.5% gross yield — strong for a South African city apartment.

R3,500,000 family home, rent R18,000/month

Annual rent R216,000 ÷ R3,500,000 = 6.17% gross yield — typical for a suburban house where capital growth does more of the work.

Frequently asked questions

What is a good rental yield in South Africa?

In most South African rental markets, 7–10% gross yield is considered healthy. Well-located sectional title flats often achieve the top end, while family homes in leafy suburbs sit lower because capital growth does more of the work.

Does this include running costs?

No — this is gross yield. To estimate net yield, subtract levies, municipal rates, insurance, maintenance provision, a vacancy allowance (typically one month per year) and bond interest from the annual rent.

What rent should I enter?

Use the realistic market rent for a comparable property in the area, not your asking price. Ask a local rental agent for a market-rate assessment or check portals like Property24 for actively listed comparables.

Should I use the purchase price or the total cost?

Purchase price gives you the standard yield figure that's comparable to other listings. For a conservative view, add transfer costs and initial repairs to the denominator — this shows the true yield on your cash committed.

How does the bond affect my return?

The bond is a separate calculation. Use our Bond Repayment Calculator to see the monthly instalment, then compare it to the monthly rent. If rent covers the instalment plus running costs, the property is cash-flow positive.

Is capital growth included in yield?

No. Yield only measures income return. Total return = yield + capital growth. In slow-growth areas, high yield matters more; in high-growth areas, lower yield can still make sense.

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