How to Calculate Rental Yield (and Why It Matters)

July 12, 2026 · 1 min read · Property & Mortgage

Rental yield is the single most-used number for comparing investment properties — but a lot of people only calculate the simpler, less accurate version of it.

Calculate your rental yield

Enter your rent, price and charges to see gross and net yield.

Use the tool

Gross yield: the quick version

Gross rental yield is simply (annual rent ÷ property price) × 100. It's fast to calculate but ignores ongoing costs, so it overstates your actual return.

Net yield: the more honest number

Net rental yield subtracts annual service charges and other running costs from the rent before dividing by the property price — a more accurate picture of what you're actually earning.

What counts as a good yield

"Good" varies significantly by market and property type, but in much of the GCC's residential market, yields in the mid-to-high single digits are generally considered solid, with off-plan and certain apartment segments sometimes running higher than villas.

Frequently asked questions

Is a higher rental yield always better?

Not necessarily — very high yields can sometimes signal higher risk (older buildings, less desirable locations, higher vacancy risk), so yield alone shouldn't be the only factor in a decision.