Calculation Method: Annual income = monthly rent × (12 − vacant months) − annual costs entered. Annual rental yield = this income / (purchase price + purchase costs) × 100. The simple payback period is the same total investment divided by the annual income.

Assumptions: Rent and costs are assumed to stay constant. Income tax and loan costs are not calculated automatically; value growth, inflation and sale proceeds are not included. This result is not the total return on investment (ROI). Under annual costs, enter the operating costs borne by the owner, such as maintenance, insurance, taxes and service charges; do not add the same cost twice. The results depend on the assumptions you enter.
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