Rental yield and payback guide

Compare investment scenarios by separating gross yield, income after expenses and simple payback time.

Gross rental yield

Annual gross rent is monthly rent multiplied by the assumed number of occupied months. Gross yield is that income divided by the property price and multiplied by 100.

Net income and expenses

Subtract owner-paid dues, maintenance and operating costs from gross income. Tax and financing costs are not included unless entered separately.

Simple payback

Simple payback is the property price divided by annual net rent. If net rent is zero or negative, no finite payback period can be calculated.

Compare scenarios

Try different rent, occupancy and maintenance assumptions. Seasonality matters. Appreciation is not regular rent cash flow and is not guaranteed.

Example

For a TRY 1,000,000 property, TRY 10,000 monthly rent and 12 occupied months, gross rent is TRY 120,000 and gross yield is 12%. With TRY 20,000 annual expenses, net rent is TRY 100,000 and simple payback is 10 years.
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