Confused about how to work out the rental yield of a property? Fret not and use our rental yield calculator and compute the yield of property in no time.
But why do you have to calculate the rental yield before investing anywhere?
Let’s help you with this information before we get into the calculation part of rental yield.
Why do we say that rental yield is one of the important factors while considering investing in a property?
With a fully sketched plan, property investment is no rocket science. Anyone can become an investor. Purchasing a property for investment is not only a great investment option but also offers long term security.
Buying a property requires much deliberation. It’s a tiresome and formidable task that every investor has to go through. There are numerous factors on which the entire decision of property investment relies. Of them, the major ones are capital gain and rental yield. In this article, we are focussing on the latter which is rental yield; why rental yield matters and how to calculate the yield on a rental property.
What is Rental Yield?
The simple definition of rental yield will be the monthly rents that you get on the property you invested in. Rental yield performance is an important and decisive factor when it comes to your investment decision. By computing rental yield, you are in a better place to understand which are the high rental yield properties and if your investment decision is a wise one.
The rental yield of a property can be computed using a simple formula or also using a rental yield calculator. We will explain both methods in detail below.
How to compute the rental yield of a property?
You can calculate the yield on a rental property using a simple formula:
Let’s take an example to understand more in detail:
How to calculate rental yield using our rental yield calculator?
This is our rental yield calculator. It works on the same formula mentioned above. But here all you have to do is simply enter the values and hit the “Calculate” button. in a few seconds, you will receive the rental yield of any property you wish to buy.
So next time, instead of banging your head on the formula to compute the yield of a property, use our rental yield/ buy-to-let yield calculator for easy computation.
Note: The figures obtained using this rental yield calculator are purely based on the values entered.
We hope this article has helped you in understanding how rental yield works. We also believe that now you have an easy way to work out the rental yield that would help you purchase your investment property.