Rental Yield Calculator
Calculate rental yield for South African investment properties. Gross and net yield, cash-on-cash return, tax impact, and 10-year projection. Compare against SA market benchmarks.
Quick Calculator Get a fast estimate
R
R
Gross monthly rental received from tenant.
R
Rates, insurance, maintenance, agent fees, levies. Excludes bond repayment.
%
Estimated % of time property is vacant. Typical SA: 5–10%.
Gross Rental Yield
9.60%
Net Rental Yield
7.12%
Annual Gross Rent
R 144 000
Effective Rent (after vacancy)
R 136 800
Annual Expenses
R 30 000
Net Annual Income
R 106 800
Monthly Net Income
R 8 900
Link copied to clipboard!
Understanding Rental Yield
Gross yield is simply annual rent divided by property value. Net yield is more important — it deducts vacancy and expenses. A typical SA rental property has expenses of 25–35% of gross rent (rates, insurance, agent fees, maintenance, levies).
Aim for at least 6% net yield to justify investment versus alternatives like money market funds. Higher yields above 8% typically indicate stronger cashflow but may be in less sought-after areas with lower capital growth.
Need more detail?
Extended Calculator More options, charts, and scenario comparison
R
R
R
%
Gross Yield
Net Yield
Annual Gross Rent
R 144 000
Effective Rent (95% occupancy)
R 136 800
Annual Expenses
-R 30 000
Net Annual Income
R 106 800
Rental Yield Formulas
Gross Yield = (Annual Rent ÷ Property Value) × 100
Net Yield = ((Annual Rent × (1 − Vacancy%)) − Annual Expenses)
÷ Property Value × 100
Cash-on-Cash Return = Annual Cash Flow ÷ Cash Invested × 100
where Cash Flow = Net Income − Annual Bond Payments
Example: R1.5m property, R12,000/month rent, R30,000 expenses, 5% vacancy:
Gross Yield = (R144,000 ÷ R1,500,000) × 100 = 9.6%
Net = (R144,000 × 95% − R30,000) ÷ R1,500,000 × 100
= (R136,800 − R30,000) ÷ R1,500,000 × 100 = 7.1%
SA Rental Market Benchmarks (2024)
| Area | Gross Yield | Typical Growth |
|---|---|---|
| Cape Town (prime) | 4–6% | 6–10% p.a. |
| Cape Town (suburbs) | 5–7% | 5–8% p.a. |
| Johannesburg (Sandton) | 6–8% | 4–7% p.a. |
| Johannesburg (suburbs) | 7–10% | 3–6% p.a. |
| Pretoria | 7–10% | 3–5% p.a. |
| Durban | 6–9% | 3–5% p.a. |
| Student accommodation | 10–15% | 2–5% p.a. |
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
Property Details
R
R
%
%
%
Annual Expenses
R
R
R
%
R
Financing
R
%
years
Tax Profile
R
Net Rental Yield (after tax)
3.55%
Gross Yield
9.60%
Net Yield (before tax)
5.47%
After-Tax Yield
3.55%
Monthly Cash Flow
R -6 161
Cash-on-Cash Return
-24.64%
Monthly Bond Payment
-R 13 004
Expense Breakdown
| Effective Rental Income | R 136 800 |
| Rates & Municipality | -R 15 000 |
| Insurance | -R 8 000 |
| Maintenance | -R 12 000 |
| Agent Fees | -R 13 680 |
| Levies | -R 6 000 |
| Net Rental Income | R 82 120 |
| Tax on Rental Income | -R 28 923 |
| After-Tax Rental Income | R 53 197 |
10-Year Projection
| Year | Gross Rent | Net Income | Cash Flow | Property Value |
|---|---|---|---|---|
| 1 | R 144 000 | R 82 120 | R -73 934 | R 1 590 000 |
| 2 | R 154 080 | R 88 415 | R -67 639 | R 1 685 400 |
| 3 | R 164 866 | R 95 184 | R -60 870 | R 1 786 524 |
| 4 | R 176 406 | R 102 461 | R -53 593 | R 1 893 715 |
| 5 | R 188 755 | R 110 285 | R -45 769 | R 2 007 338 |
| 6 | R 201 967 | R 118 695 | R -37 359 | R 2 127 779 |
| 7 | R 216 105 | R 127 735 | R -28 319 | R 2 255 445 |
| 8 | R 231 233 | R 137 452 | R -18 601 | R 2 390 772 |
| 9 | R 247 419 | R 147 896 | R -8 158 | R 2 534 218 |
| 10 | R 264 738 | R 159 121 | R 3 067 | R 2 686 272 |
Frequently Asked Questions
A good gross yield is 6–10%. Cape Town prime areas often yield 4–6% with higher capital growth. Johannesburg and Pretoria suburbs typically yield 7–10%. Net yield should be at least 5% to be worthwhile after expenses.
Gross yield = Annual Rent ÷ Property Value × 100. Net yield deducts vacancy and operating expenses. Net yield is typically 1.5–3% lower. Always use net yield for comparing investments.
Yes, rental income is added to your taxable income at your marginal rate. You can deduct bond interest, rates, insurance, agent fees, maintenance, and levies. Capital improvements are deducted over time via Section 13sex allowances.
Bond interest (not capital), rates, building insurance, maintenance, agent fees (8–12%), levies, advertising, and depreciation allowances. Keep all receipts. Personal use of the property must be apportioned.
Annual Cash Flow (Net Income − Bond Payments) ÷ Cash Invested (Deposit + Costs) × 100. A positive cash-on-cash return means the property pays for itself. Negative means you subsidise from other income.