Rental Yield Calculator South Africa
Calculate the return on your rental property investment
This calculator provides estimates only. Actual returns depend on vacancies, maintenance costs, and market conditions.
Frequently Asked Questions
What is a good rental yield in South Africa?
A gross yield of 5-8% is generally considered good. Net yields of 4-6% are typical for well-managed properties.
What costs should I include?
Include levies (body corporate), rates and taxes, insurance, maintenance allowance, and property management fees.
Should I factor in bond repayments?
Rental yield is calculated on property value, not on your bond. For cash-on-cash return, divide net income by your actual cash invested (deposit + costs).
This calculator provides estimates only. Actual returns depend on vacancies, maintenance costs, and market conditions.
How the rental yield calculator works
Gross yield is annual rent divided by purchase price. Net yield deducts the costs of holding the property — rates, levies, insurance, maintenance and vacancies — before dividing.
R12,000 a month on a R1 850 000 property is R144 000 a year, a gross yield of 7.78%.
Deduct R2 500 a month of costs and the net yield falls to 6.16%. A bond at 11,25% costs more than either figure, which is why a rental property can be cash-flow negative while still showing a yield.
What changes the answer in South Africa
Yields in South African metros typically sit between 6% and 9% gross, with higher yields in lower-priced areas and lower yields in prime suburbs where capital growth is the point. Rates, levies and maintenance are the buyer’s cost; a managing agent typically charges 8–12% of rent plus VAT. Vacancy of one month a year removes 8,3% of the rent before anything else.
Common questions about the rental yield calculator
Is gross or net yield the one that matters?
Net. The 7.78% gross figure ignores R2 500 a month of costs; the 6.16% net figure is what the investment actually returns before finance.
What is a good rental yield in South Africa?
Above 7% gross is generally considered workable, but compare it with the bond rate: if the yield is below the finance cost, the shortfall is a monthly cash contribution.
Does rental yield include capital growth?
No. Yield is income only. Total return is yield plus capital growth, and the two often move in opposite directions by area.