Free property calculator
Real estate rental yield calculator
Compare a property's purchase price with its rental income and yearly costs to estimate gross yield, net yield and payback time.
Property assumptions
Enter property and rent details
Annual operating expenses
OptionalEnter yearly costs. Financing payments and changes in property value are not included.
Annual cash-flow breakdown
See how the entered operating costs reduce gross rental income.
How rental yield is calculated
Rental yield tells you how much income a property produces each year compared with what it cost. It is the quickest way to compare an apartment in Tbilisi with one in Batumi, or a rental property with a bank deposit, on the same scale.
The calculator shows two figures. Gross yield is the annual rent divided by the purchase price, before any costs. Net yield subtracts the yearly running costs you enter (maintenance and repairs, property tax and management or agency fees) and divides what is left by the price. It also shows the payback period: how many years of net income it would take to earn back the purchase price.
Gross yield is useful for a first filter when you look at listings. Net yield is the number to decide on, because two apartments with the same rent can have very different costs. Neither figure includes changes in the property's value, the cost of a mortgage or months when the apartment stands empty.
Net yield = (monthly rent × 12 − annual costs) ÷ purchase price × 100%
Gross yield uses the same formula without subtracting costs. Payback period = purchase price ÷ annual net income.
Example: a 300,000 GEL apartment rented at 2,000 GEL a month
Imagine buying an apartment for 300,000 GEL and renting it for 2,000 GEL a month. You expect 2,000 GEL a year for maintenance, 800 GEL property tax and 1,200 GEL in management fees.
- Annual rent: 2,000 × 12 = 24,000 GEL.
- Gross yield: 24,000 ÷ 300,000 = 8.0%.
- Annual costs: 2,000 + 800 + 1,200 = 4,000 GEL.
- Annual net income: 24,000 − 4,000 = 20,000 GEL.
- Net yield: 20,000 ÷ 300,000 ≈ 6.67%; payback period: 300,000 ÷ 20,000 = 15 years.
Costs take the yield from 8% down to about 6.7%. If the apartment stood empty for one month a year, net income would fall to 18,000 GEL and the net yield to 6%, which shows why it pays to be realistic about vacancies.
How to read the result
- Include every recurring cost. Building fees, repairs between tenants, furniture replacement, utilities you pay as the owner and agency commissions all reduce the real return.
- Allow for empty months. Seasonal and short-term rentals, common in Batumi and other resort areas, can earn a high rent in summer and little in winter; enter an average monthly rent across the whole year.
- Check the tax on rental income. Rental income in Georgia is taxed, and the rate depends on how you are registered; confirm the current rules with the Revenue Service (rs.ge) and include the tax in your annual costs.
- Compare like with like. Put the net yield next to the rate on a bank deposit in the same currency to judge whether the extra work and risk of renting are worth it.
- Remember what the yield leaves out. A low yield can still be a good investment if the property's value is rising, and a high yield can hide a building that will need expensive repairs.
Frequently asked questions about rental yield
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