Rental Yield Calculator
Calculate gross and net rental yield on investment property and evaluate the viability of your real estate investment in Saudi Arabia
How to Use
- Enter the investment property value
- Enter the expected or actual monthly rent
- Enter annual expenses (maintenance, insurance, management, vacancies)
- Press "Calculate" to see gross yield, net yield, and payback period
Rental Yield — The Property Investor's Metric
Rental yield is the key metric for evaluating real estate investment viability — it expresses rental income as a percentage of property value.
Gross Yield
Gross Yield = (Annual Rent ÷ Property Value) × 100
Excludes expenses; used for quick comparison between properties.
Net Yield
Net Yield = ((Annual Rent – Annual Expenses) ÷ Property Value) × 100
More accurate as it factors in maintenance, insurance, management fees, and vacancies.
Saudi Market Average Yields (2025)
- Riyadh: 5–7% gross
- Jeddah: 5–6.5% gross
- Khobar: 5.5–7% gross
Calculation Methodology
Gross yield
Gross yield = annual rent ÷ property value × 100. It is useful for quick comparison but does not deduct expenses.
Net yield
Net yield = (annual rent − annual expenses) ÷ property value × 100. It is more realistic because it deducts maintenance, management, insurance, and vacancy costs.
Calculation limits
The calculator does not include property value changes, financing costs, future taxes, or unexpected vacancies unless you include them in annual expenses.
Practical Examples
Apartment in Riyadh — valued at 750,000 SAR
Ahmad owns an apartment valued at 750,000 SAR, rented at 3,500 SAR/month, with annual expenses of 8,000 SAR. Annual rent = 3,500 × 12 = 42,000 SAR Gross yield = (42,000 ÷ 750,000) × 100 = 5.6% Net income = 42,000 - 8,000 = 34,000 SAR Net yield = (34,000 ÷ 750,000) × 100 = 4.53%
Villa in Jeddah — valued at 2,000,000 SAR
Fatima owns a villa valued at 2,000,000 SAR, rented at 8,000 SAR/month, with annual expenses of 25,000 SAR. Annual rent = 8,000 × 12 = 96,000 SAR Gross yield = (96,000 ÷ 2,000,000) × 100 = 4.8% Net income = 96,000 - 25,000 = 71,000 SAR Net yield = (71,000 ÷ 2,000,000) × 100 = 3.55%
Frequently Asked Questions
What is the difference between gross and net rental yield?
What is a good rental yield in the Saudi market?
What expenses should I deduct for net yield?
How does RETT (Real Estate Transaction Tax) affect yield?
Is rental yield better than stock or deposit returns?
What is the payback period and how is it calculated?
Legal References
Disclaimer: The results shown are approximate and for reference only, and do not constitute financial or legal advice. Actual amounts may vary based on additional factors. Please consult the relevant official authorities or a licensed financial advisor for accurate information specific to your situation.