Gross yield, net yield and the bond test
Three numbers decide whether a rental property is working for you: gross yield, net yield and the spread over a safe bond. Here is how to work each out.
HomeROI calculator
Free resource
Rental yield and ROI calculator
Put in a price, a rent and your costs. Get gross and net yield, cash-on-cash and a 10-year return, with bear, base and bull cases. Works in rupees, dirhams, dollars and four more currencies, with or without a loan.
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How it works
What the calculator does, in plain words
Yield
Gross yield is a year of rent divided by the price. Net yield takes off the time the flat is empty and the running costs first. Net is the one to compare, and it is always lower.
Cash-on-cash and ROI
Cash-on-cash is year-1 cash flow divided by the cash you put in, after the loan payments if you use a loan. 10-year ROI is the total gain after selling, divided by the cash you put in.
Bear, base, bull
Bear and bull nudge price growth, rent growth, vacancy and the loan rate together by a fixed step, the same step the Property Lab uses. They show sensitivity, not likelihood.
Starting numbers are examples, not market data (To be verified). Replace every one with your own. The calculator does not look up prices or rents and does not convert between currencies. Income tax on rent and tax on a sale gain are not included.
Questions
About the calculator
What is a good rental yield?
There is no single number that is good. Net yield only means something next to your alternatives: what a fixed deposit or bond pays where you live, the loan rate you would pay, and how much price growth you are willing to count on. The bond test post walks through this.
What is the difference between yield and ROI?
Yield looks at rent only. ROI here also counts what the property might sell for after ten years, minus selling costs and any loan left. Most of a high ROI usually comes from the price-growth number you type, which is a guess, so the page also shows the result with no growth at all.
Does it work for rupees, dirhams and dollars?
Yes. Choose INR, AED, USD, GBP, AUD, NZD or QAR. It only changes how amounts are written and the starting examples. It does not convert one currency into another or use exchange rates.
Is it a forecast or advice?
No. It is arithmetic on the numbers you enter. It makes no promise of return, ignores several taxes, and Holdengard does not currently hold a real-estate broker licence or a RERA registration. Check the numbers with a licensed local professional before you act.
Is anything stored or sent?
The calculator runs in your browser and sends nothing. The share link keeps your numbers in the web address after the # sign, which is not sent to any server. Only the optional form above sends details, and only when you press its button.
From the Insights
Read more on this topic
Yield vs return: a Property Lab worked example
A worked example in the Property Lab: why a 3% rent yield, a home loan and a 10-year hold give very different results, and what would flip the verdict.
How Holdengard works, and what we are not
We share knowledge, build tools and run a community. We are not a broker, not a listing portal and not yet licensed anywhere. Here is the plain version.
From the Insights
Read more on this topic
Gross yield, net yield and the bond test
Three numbers decide whether a rental property is working for you: gross yield, net yield and the spread over a safe bond. Here is how to work each out.
Yield vs return: a Property Lab worked example
A worked example in the Property Lab: why a 3% rent yield, a home loan and a 10-year hold give very different results, and what would flip the verdict.
How Holdengard works, and what we are not
We share knowledge, build tools and run a community. We are not a broker, not a listing portal and not yet licensed anywhere. Here is the plain version.