Rental Yield Calculator
Calculate gross yield, net yield, cap rate, and payback period for Korean rental property investments. Compare gap-investing ROI instantly.
This calculator is for reference only and may differ from actual amounts due to law changes or individual circumstances. Please consult a licensed professional (tax accountant, labor attorney, etc.) for accurate calculations.
Annual Rent Income
18,000,000
NOI (Net Operating Income)
15,000,000
Gross Yield
3.60%
Net Yield
3.00%
Cap Rate
3.00%
Payback Period
33.3 years
Yield Comparison (%)
AI Advisor
Average yield. Acceptable for stable markets.
Note: Universal calculator with no country-specific tax. Results are estimates. Always consult a licensed real estate advisor.
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Frequently Asked Questions
Q. What is the difference between gross yield and net yield?
Gross yield = annual rent Γ· purchase price. Net yield deducts operating costs (maintenance, vacancy, insurance). Use net yield for investment decisions.
Q. Is a higher cap rate always better?
Higher cap rates mean more income but also more risk. Seoul prime office cap rates run 4β5%; provincial retail can reach 6β8%. A 5β7% range is generally well-balanced.
Q. What payback period is reasonable?
Payback period = years to recover the principal through rental income. Korean apartments average 20β30 years; under 15 years is considered excellent. Global averages range 10β25 years by asset type.
Q. What rental yield is considered worthwhile?
Generally 5%+ annual yield is solid. Korean apartments average 3β4%, officetels 4β6%, commercial properties 5β8%.
Q. What is the difference between surface yield and real yield?
Surface yield = (annual rent / purchase price) Γ 100. Real (net) yield deducts all costs β management, taxes, repairs, vacancy. Always base investment decisions on net yield.
Q. How is vacancy rate factored in?
Enter your expected vacancy rate (%) and the calculator automatically deducts that proportion from annual rental income when computing net yield.
How to Use
Input the total acquisition cost of the investment property.
Input monthly rental income. You may include interest earned on the security deposit.
Enter total annual expenses: maintenance, vacancy losses, insurance, and management fees.
Compare gross yield, net yield, cap rate, and cash-on-cash (CoC) return in a side-by-side chart.
Expert Knowledge: Rental Yield Calculator
Rental yield analysis is foundational to global real estate investment decisions. Manhattan cap rates run 3β4% while Austin, Texas reaches 6β7%. Higher cap rates signal higher income but lower capital appreciation potential. Institutional investors globally track the cap rate spread over government bond yields β a shrinking spread signals rising bubble risk.
Korea's regional yield landscape is stark: prime Gangnam apartments yield 1β2% gross β among the world's lowest. Provincial small-format retail or officetels can reach 5β8%. Distinguishing assets held for capital gains (core city locations) from income-generating assets (high-yield provincial properties) is essential to matching investments with objectives. Gap investors (μ μΈ leverage) must account for jeonse refund risk (μμ μΈ β deposit exceeding market value).
For true investment analysis, net yield (after taxes, vacancy, maintenance) is the only valid metric. Acquisition tax (1β3%), property tax, comprehensive real estate holding tax, and capital gains tax together typically reduce effective yield 1β2 percentage points below gross yield. Always model the full cost stack before committing capital.
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