Rental yield calculator
Gross and net yield, cash flow after the bond, and the rent you need to break even.
Updated for the 2026/27 tax year. Free, no sign-up needed.
How the calculation works
Gross yield is a full year of rent divided by the purchase price. Net yield uses the rent you actually collect after empty months, less levies, rates, insurance, maintenance and agent fees. Neither includes the bond, so they compare properties regardless of how you pay for them.
Cash flow then subtracts the bond repayment, worked out from the loan (price less deposit), rate and term. Cash-on-cash return divides a year's cash flow by the cash you put in: the deposit plus once-off buying costs.
Not modelled: income tax on the rent, rent and cost increases over time, and growth in the property's value.
Questions people ask
What is the difference between gross and net rental yield?
Gross yield is a year of rent divided by the purchase price. Net yield first subtracts vacancies, levies, rates, insurance, maintenance and agent fees, which is why it is the better guide to what the property actually earns.
Why can a good yield still lose money each month?
Yield ignores the bond. A property can show a healthy net yield and still cost you money every month if the repayment is larger than the net rent. That is what the cash flow figure shows.
What is cash-on-cash return?
Annual cash flow after the bond divided by the cash you put in: your deposit plus transfer duty, legal and bond registration costs. It compares the property with other uses of that cash.
Is rental income taxed?
Yes. Net rental income is added to your taxable income. Bond interest, rates, levies, insurance, repairs and agent fees are deductible, but the capital part of the bond repayment is not.
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Estimates use the SARS tables for the 2026/27 tax year and the assumptions shown. They are for planning only and are not tax or financial advice. For a submission, use your actual figures or speak to a registered tax practitioner.