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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How to read the Rental Yield Calculator result
Rental Yield Calculator is most useful when it is treated as a quick decision aid, not as a standalone answer. Enter clean inputs, compare the result with a related tool, and keep the final decision tied to the real context behind the numbers or text.
Check the input first
A small typo, wrong unit, or missing condition can change the Rental Yield Calculator output. Recheck the input before copying, saving, or sharing the result.
Compare one related signal
Use another MillionsCode tool or hub to confirm the same decision from a different angle. This reduces mistakes when the result affects money, health, publishing, or planning.
Keep the result reusable
If the result is something you will revisit, copy it into your notes with the date and the assumption you used. A saved result without its assumption is easy to misread later.
Use guides for edge cases
When the result feels close to a limit, read the related guide before acting. Calculators and browser tools are fast, but rules, fees, policies, and personal conditions can change the final answer.
Before you act on the result
Use this short checklist before treating the Rental Yield Calculator result as final. It helps separate a quick browser calculation from a real decision that may affect money, publishing, travel, health, study, or work.
Is the result sensitive to one input?
If one value can change the answer heavily, run the tool twice with a conservative and an optimistic assumption. The difference between those two results is often more useful than a single exact number.
Does the result need a date?
Many decisions depend on the date of the calculation. Exchange rates, search demand, platform rules, fees, and personal conditions move over time, so save the date with the result when you plan to reuse it.
Can another tool confirm it?
When the result leads to a real action, open one related tool or guide and check whether the same direction still makes sense. This is especially important for finance, SEO, crypto, tax, health, and publishing decisions.
Is there a policy or local rule behind it?
A browser tool cannot know every local rule, bank condition, platform limit, or personal exception. If the result is close to a threshold, read the related guide before making the final call.
A practical next step
After using Rental Yield Calculator, write down the input, the output, and the action you are considering. If the action still looks useful after a second check, move to the related hub or guide and compare the broader context before you commit.
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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