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Rental Yield Calculator

Calculate rental yield and monthly net income from price, deposit, rent and loan.

원
원

Acquisition tax, brokerage fee, legal fees, etc. (optional). Get them from the acquisition tax and brokerage fee calculators.

원

Deposit received from the tenant. It reduces your own capital.

원/월
원

Loan principal used for the purchase. Enter 0 if none.

%

Interest-only repayment is assumed.

원/년

Property tax, maintenance, repairs, etc. (optional).

%

Share of the year with no rent received (optional).

Real (equity) yield · per year

4.44%

Own capital invested180,000,000 KRW
Annual rent income (after vacancy)12,000,000 KRW
Annual loan interest4,000,000 KRW
Annual holding costs0 KRW
Annual net income8,000,000 KRW
Gross yield (annual rent ÷ price)4.00%
Monthly net income666,667 KRW

What is rental yield?

Rental yield shows how much a property earns in a year as a percentage. The figure changes with what you divide by, so this calculator shows two versions.

  • Gross yield = annual rent ÷ purchase price. A surface figure that ignores the loan and deposit (some sites subtract the deposit from the denominator, so numbers elsewhere may differ).
  • Real (equity) yield = annual net income ÷ own capital invested. It shows what your own money actually earns.
How it is calculated

Own capital = price + acquisition costs − deposit − loan

Annual rent income = monthly rent × 12 × (1 − vacancy rate)

Annual net income = annual rent income − annual loan interest (loan × rate) − annual holding costs

Monthly net income = annual net income ÷ 12

Rental income tax, income tax and health insurance effects are not included. What you actually keep is lower after taxes.

Example — a 300M KRW property

Price 300M, acquisition costs 10M, deposit 30M, monthly rent 1M, loan 100M at 4% per year:

  • Own capital = 300M + 10M − 30M − 100M = 180M KRW
  • Annual rent = 1M × 12 = 12M, annual interest = 4M → annual net income 8M KRW
  • Gross yield = 12M ÷ 300M = 4.00%, real yield = 8M ÷ 180M ≈ 4.44%
Input notes
  • If own capital is 0 or less (deposit + loan is at least price + costs), the real yield is not calculated and a notice is shown instead.
  • The rate assumes interest-only repayment (bullet loan). For amortizing loans, check the loan interest calculator.
  • Vacancy and holding costs differ per property, so estimate them yourself.
  • Results are reference estimates based on your inputs. Before buying or borrowing, confirm with a tax accountant, licensed agent or your lender.

FAQ

What is the difference between gross and real yield?
Gross yield divides annual rent by the purchase price and ignores the loan and deposit. Real (equity) yield divides annual net income (after loan interest and holding costs) by the own capital actually invested. With a loan, the two can differ a lot.
Are taxes included in the yield?
No. Rental income tax, income tax and health insurance premiums are not calculated. Property tax and similar costs count only if you enter them in the annual holding costs field. Taxes depend on income and the number of homes, so check them with an expert or the tax authority.
Why is the deposit subtracted from own capital?
The deposit from the tenant must be returned at the end of the lease, but until then it funds the purchase, so less of your own money is needed. Own capital is therefore price plus costs minus the deposit and the loan.
What counts as acquisition costs?
One-off purchase costs such as acquisition tax, brokerage fee, legal and registration fees, and repairs before moving in. Acquisition tax and brokerage fee can be found with the calculators on this site. Leave 0 if unknown, but the yield will then look higher.
Own capital shows as zero or negative.
When deposit plus loan is at least price plus costs, no own money goes in and the ratio is meaningless. The real yield is then not shown; only the annual and monthly net income are. Double-check your inputs first.

Related calculators

Acquisition Tax Calculator Property acquisition tax. Brokerage Fee Calculator Real-estate agent commission. Loan Interest Calculator Principal and interest repayment amounts.