Rental Yield Calculator

Last reviewed: 2026-09-29

Quick answer

Gross rental yield = annual rent ÷ property price × 100. Net yield = (rent actually collected after vacancy − annual expenses) ÷ (price + purchase costs) × 100. Example: an apartment bought for SAR 800,000 and let for SAR 48,000 a year → gross yield 6%. With one vacant month, SAR 6,000 of expenses and SAR 63,000 of purchase costs, net income is SAR 38,000 and the net yield is about 4.4%.

Calculator

Property price (SAR)Annual rent (SAR)Annual expenses (SAR)Vacant months per yearPurchase costs (SAR)

e.g. 5% RETT + 2.5% commission + its VAT

Result

Gross yield: 6.00%
Net annual income: 38,000 SAR
Net yield: 4.40%
Payback period: 22.7 years

Estimates for guidance only; the governing regulations and official bodies are the final reference.

How it is calculated

Gross yield = annual rent ÷ price × 100
Collected rent = annual rent × (12 − vacant months) ÷ 12
Net income = collected rent − annual expenses
Net yield = net income ÷ (price + purchase costs) × 100
Payback (years) = (price + purchase costs) ÷ net income

Notes

Purchase costs usually include the 5% real estate transaction tax and the 2.5% broker commission plus its VAT.
Annual expenses: maintenance, management, insurance, Ejar fees and any services the lessor does not recover.
Residential rent is VAT-exempt; commercial rent carries 15% VAT that a registered lessor remits to ZATCA, so it is not income.
Yield does not include changes in the property’s own value.

FAQ

What is the difference between gross and net rental yield?

Gross yield divides annual rent by the price only; net yield deducts vacancy and expenses and adds purchase costs to the price, so it is closer to what the investor actually earns.

Which expenses are deducted for net yield?

Routine maintenance, management or office fees, insurance, Ejar documentation fees and shared services the lessor does not recover from the tenant.

Is VAT part of the yield calculation?

Residential rent is VAT-exempt. Commercial rent carries 15% VAT collected from the tenant and remitted to ZATCA by a registered lessor, so it is not part of income.

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