Return on Rent Calculator

Investing in real estate can provide consistent income through rentals. One of the key metrics to evaluate the profitability of rental properties is the Return on Rent (also known as rental yield). Our Return on Rent Calculator helps you quickly determine the percentage return you earn from your property based on the rental income and property value.

What is Return on Rent?

Return on Rent is the annual rental income expressed as a percentage of the property’s total value (or investment cost). It shows how profitable a rental property is and helps investors compare different real estate opportunities.

Formula for Return on Rent

$\text{Return on Rent (\%)}=\left(\frac{\text{Annual Rent Income}}{\text{Property Value}}\right)\times 100$

Example Calculation

Suppose you earn $2,40,000 per year in rent from a property worth $40,00,000.

$\text{Return on Rent ( \%)}=\left(\frac{2,40,000}{40,00,000}\right)\times 100$

$\text{Return on Rent (\%)}=6$

So, your Return on Rent is 6% annually.

Why is Return on Rent Important?

1. Investment Comparison – Helps evaluate different real estate options.
2. Profitability Check – Measures if the rent justifies the property’s value.
3. Financial Planning – Assists in long-term wealth management and ROI tracking.

Benefits of Using a Return on Rent Calculator

• Provides quick results without manual calculation.
• Useful for landlords, property investors, and financial analysts.
• Helps in making smarter real estate investment decisions.

Conclusion

The Return on Rent Calculator makes it easy to measure the profitability of your rental property. By simply entering the Annual Rent Income and Property Value, you can instantly calculate the Return on Rent (%) and make better investment decisions.