Rental yield calculator

Gross yield = annual rent ÷ purchase price. It is the headline number agents quote, but ignores expenses, vacancy, and loan costs. Useful for quick comparisons but a poor measure of actual return.

Net yield = (annual rent − operating expenses − vacancy loss) ÷ purchase price. This is the true unlevered return on the property — before financing. It reflects what the property earns above the costs of owning it.

Cash-on-cash = annual cash flow ÷ total cash you put in. If you take a 90% loan, your "cash invested" is the 10% downpayment plus upfront costs (stamp duty, legal fees). Cash-on-cash is what matters most for leveraged property investors — it measures your return on the actual money at risk.

For KL/Penang condos, net yields of 3.5%–5% are typical. Above 5% is good. Above 7% is excellent but verify the numbers — overstated rent estimates or understated maintenance fees are common. Landed property tends to yield less than condos but appreciates better.

Strata maintenance fee, sinking fund, assessment tax (cukai pintu), quit rent (cukai tanah), fire/building insurance, property management fee if outsourced. For older buildings add a repair reserve (RM50–200/mo). Furnishing is one-off so we exclude it from the monthly yield calculation.

5–10% is a reasonable Malaysian range for active rental zones (KL, Penang Island, JB). In oversupplied areas (some KL fringe condos, certain JB districts), 15–20% may be realistic. The calculator defaults to 8%.

Yes — rental income is taxable under Section 4(d) of the Income Tax Act 1967. You can deduct allowable expenses (the same line items above, plus loan INTEREST, not principal). Net rental income is added to your other income and taxed at your personal rate. This calculator shows pre-tax cash flow.

No. Yield measures only the income side. Total return = yield + capital growth. In Malaysia, many condo investments under-perform on yield but benefit from medium-term price appreciation (or, less often, suffer from depreciation).