Rental Yield Calculator
Is that property worth it as an investment? Enter the price, the monthly rent and the running costs to see gross and net rental yield, how many years the rent takes to repay the price, and how it compares with a bank deposit.
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How this is calculated
- Gross yield = annual rent ÷ purchase price.
- Net yield = (annual rent × (1 − vacant weeks ÷ 52) − yearly costs) ÷ purchase price.
- Payback = purchase price ÷ net annual income.
- The comparison line applies the deposit rate you enter to the same capital.
Yields in Pakistani cities are low by world standards (typically 2% to 5% gross for houses, 5% to 8% for flats and shops) because prices are driven by expected capital gains and by land as a store of value; that is exactly why the net figure and the deposit comparison matter before you buy to let.
Frequently asked questions
- What is a good rental yield in Pakistan?
- Flats and shops in Karachi, Lahore and Islamabad usually gross 5% to 8%; houses in DHA and Bahria often 2% to 4%. Anything under the bank deposit rate is a bet on price growth, not income.
- Which costs should I include?
- Property tax (annual), society or maintenance charges, repairs (budget 1% of the price a year for older buildings), the agent's commission when you find a tenant, and insurance if any.
- How is rent taxed?
- Rental income is added to your other income and taxed at the normal individual slabs, with deductions for repairs (a fixed share), property tax and insurance. Company tenants deduct withholding tax on the rent.
- Does the calculator include capital gains?
- No. It measures income only. Use the capital gains tax calculator to see what a future sale would cost.
Sources
- Standard real-estate yield arithmetic; comparison rate from the SBP policy rate on the data hub: Searchable
Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.