Rental Yield Calculator: Analyze Real Estate Investment Returns

Why Calculate Rental Yield Before Investing?

Smart property investment starts with understanding the numbers. By calculating rental yield and ROI before purchasing:

• Avoid Negative Cash Flow Properties – Identify properties that will cost more than they generate
• Compare Multiple Investment Opportunities – Evaluate different properties using consistent metrics
• Secure Better Financing – Approach lenders with comprehensive property analysis
• Plan for Future Growth – Understand your investment’s current performance and future potential
• Make Objective Decisions – Remove emotion from the equation with concrete financial data

How to Use the Calculator

Our calculator offers two analysis modes to suit your needs:

Basic Calculation

Perfect for quick property evaluation. Simply enter:

• Property purchase price
• Expected monthly rental income

Advanced Analysis

For a comprehensive investment breakdown, enter additional details:

• Down payment and closing costs
• Mortgage terms and interest rate
• Property taxes and insurance
• Maintenance costs and vacancy rate

After entering your information, click “Calculate” to instantly see your potential returns. All calculations happen in your browser—we don’t store your financial information.

Understanding Your Results

Gross Yield

This percentage represents your annual rental income divided by the property price before expenses. While a higher yield is generally better, typical residential rental yields range from 5-10% depending on location and property type.

Cash-on-Cash Return

This metric shows the annual cash income earned compared to the cash invested, giving you a clearer picture of your actual return on investment. Many investors target a minimum 8-10% cash-on-cash return.

Cap Rate

The capitalization rate helps you evaluate a property’s performance regardless of financing terms. This is particularly useful when comparing different investment opportunities or determining a property’s fair market value based on its income potential.

Start Calculating Your Potential Returns

Try our calculator below to analyze your next real estate investment and make a more informed decision. The right property at the right price can provide years of passive income and long-term wealth building—our calculator helps you find that perfect investment opportunity.

Rental yield and ROI formulas

The calculator uses these standard formulas:

• Gross rental yield = annual rent ÷ property price × 100
• Net rental yield = (annual rent − annual running costs) ÷ total purchase cost × 100
• Cash-on-cash return = annual cash flow after mortgage payments ÷ cash you invested × 100
• Cap rate = net operating income ÷ property value × 100

Worked example: a Bangkok condo

Say you buy a condo for THB 4,000,000 and rent it out for THB 20,000 a month.

• Annual rent: THB 20,000 × 12 = THB 240,000
• Gross yield: 240,000 ÷ 4,000,000 × 100 = 6.0%
• Running costs: common-area fees, insurance, maintenance, one vacant month and agent fees, say THB 60,000 a year
• Total purchase cost including transfer fees and furniture: say THB 4,300,000
• Net yield: (240,000 − 60,000) ÷ 4,300,000 × 100 = 4.2%

The gap between gross and net yield is why the advanced options matter: costs that look small each month can take a third or more off your return.

Rental yield with a mortgage

If you borrow to buy, the yield on the property stays the same, but your return on the cash you put in changes. Using the same example with a THB 2,000,000 deposit and a THB 2,000,000 loan, annual mortgage payments come out of the THB 180,000 net income, and the cash-on-cash return is that remaining cash flow divided by the deposit and purchase costs you paid. Borrowing increases your return when the net yield is higher than the interest rate, and reduces it when it’s lower. Foreign buyers often find it hard to get a mortgage from a Thai bank, so check your financing options first.

What is a good rental yield?

There’s no single answer. Compare the net yield with what you could earn elsewhere at similar risk, and with your mortgage interest rate if you borrow. Yields also vary by location, building age and unit size, so compare similar units in the same area rather than city averages. Before buying, read our guides to renting out a condo in Bangkok and condotel investments.

Frequently asked questions

How do you calculate ROI on a rental property?

Divide the annual profit (rent minus all running costs and mortgage interest) by the total amount you invested, then multiply by 100. The calculator does this for you in the advanced view.

What is the difference between gross and net rental yield?

Gross yield only uses rent and price. Net yield deducts running costs such as fees, maintenance, insurance, vacancies and management, so it shows your real return.

Does the calculator work for property outside Thailand?

Yes. The formulas are the same in any country and currency. Enter the price, rent and costs in the same currency.