Investment tools
Separate property operating performance from financing to estimate gross, effective and net rental yields, annual cash flow, and cash-on-cash return.
How this calculator works
Rental yields measure the property's operating performance before financing. Loan repayments are excluded from operating expenses and net rental yield, then applied separately when calculating annual cash flow and cash-on-cash return.
Gross yield = Gross annual rent ÷ Purchase price. Effective yield = Rent after vacancy ÷ Purchase price. Net yield = Net operating income ÷ Purchase price. Annual cash flow = Net operating income − Loan repayments. Cash-on-cash return = Annual cash flow ÷ (Cash invested + Renovation).
For a Rs. 25,000,000 property renting for Rs. 150,000 monthly, gross rent is Rs. 1,800,000 and gross yield is 7.20%. With 5% vacancy, Rs. 15,000 monthly maintenance, and Rs. 75,000 annual fees, net operating income is Rs. 1,455,000 and net yield is 5.82%. After Rs. 900,000 loan repayments, annual cash flow is Rs. 555,000; on Rs. 8,000,000 total cash invested including renovation, cash-on-cash return is 6.94%.
FAQ
Net rental yield measures the property's operating performance independently of financing. Loan repayments are applied later to calculate annual cash flow and cash-on-cash return.
Enter the purchase cash or down payment before renovation. The calculator adds the separately entered renovation cost when calculating total cash invested.
No. It estimates rental performance only and does not forecast a future sale price.
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