Overview

The Real Estate Yield Calculator computes investment returns using multiple metrics including rental yield, capital gains, ROI, and leverage effects. By entering purchase price, rental income, costs, and loan terms, you can analyze the true profitability of a real estate investment.

Formula

Total ROI = (Total returns - Total costs) ÷ Equity × 100

Rental yield = (Annual rent - Annual costs) ÷ Purchase price × 100
Equity return = Annual net income ÷ Equity × 100
CAP Rate = Net Operating Income (NOI) ÷ Purchase price × 100

Example: Purchase 500M, Equity 200M, Loan 300M (4%), Rent 1.5M/month
Annual rent = 18M KRW
Annual loan interest = 12M KRW
Annual net = 18M - 12M - expenses = ~4M KRW
Equity return = 4M ÷ 200M × 100 = 2.0%

How to Use

1. 1Enter the property purchase price.
2. 2Enter equity (investment capital) and loan terms (amount, rate).
3. 3Enter expected monthly rental income.
4. 4Enter various costs (acquisition tax, management, repairs, vacancy rate).
5. 5Click calculate to see rental yield, equity return, CAP Rate, and more.

Tips

• ✔Always factor in vacancy rates (typically 5-10%) for conservative yield calculations.
• ✔Include all ancillary costs: acquisition tax, brokerage fees, repairs, property tax.
• ✔Leverage (loans) increases equity returns but also amplifies risk.
• ✔Consider capital appreciation alongside rental yield for total return assessment.
• ✔Compare across property types (commercial, officetel, apartment) as average yields differ.

FAQ