CCalclabhub

Real Estate

Gross rental yield

The headline figure, ignoring all costs. Useful as a screen and as a like for like comparison between properties.

The Formula

gross yield = annual rent / property value

The headline figure, ignoring all costs. Useful as a screen and as a like for like comparison between properties.

SymbolMeaning
Y gGross yield
RAnnual rent
VProperty value

What Each Symbol Means

Y gratio

Gross yield

Rent as a percentage of value, before costs.

Rcurrency

Annual rent

Total rent received in a year.

Vcurrency

Property value

Purchase price or current market value.

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate rental yield page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate Rental Yield, filed under Finance. Every number the guide produces comes from substituting into this one line.