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