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Rental Yield Calculator South Africa 2026

Is buy-to-let worth it? Work out the gross and net rental yield, ROI and monthly cash flow on a South African investment property using current 2026 figures.

✓ Updated with 2026 rates•✓ Free & no sign-up•✓ Instant results

Rental yield & cash flow

Live buy-to-let estimate · SA property · 2026

R

Current market value or purchase price

R

Gross monthly rent before costs

R

Rates, levies, insurance, maintenance, management

R

Repairs, upgrades, legal fees

Net rental yield

-3.7%

8.6% gross · Poor

Monthly cash flow
R0
ROI on deposit
-18.7%
Net annual income
R0
Required deposit (20%)
R500 000

A R2 500 000 property renting at R18 000/month gives a gross yield of 8.6% (net -3.7%), a poor return that is cash-flow negative at about R7 773 per month to top up.

Income breakdown

  • Gross annual rentalR216 000
  • Vacancy allowance-R17 280
  • Net rental incomeR198 720

Expense breakdown

  • Monthly expenses (annual)R42 000
  • Annual expensesR15 000
  • Bond interest (annual)R235 000
  • Total annual expensesR292 000

What is a good rental yield in South Africa?

  • Gross yield of 8–12% is generally considered good in the SA market
  • Net yields of 5–8% are realistic once running costs are deducted
  • Budget 20–30% of rental income for rates, levies, insurance and management
  • Allow 1–2 months vacancy per year between tenants

Property investments carry risk and past performance does not guarantee future returns. This is an independent estimate, not financial advice.

How to calculate rental yield in South Africa

Understanding gross vs net rental yield helps you compare buy-to-let properties and make profitable investment decisions. Gross yield is a quick headline number, while net yield — after all costs — shows what the property actually earns you each year.

Gross rental yield

Annual rental income ÷ property value × 100. A fast way to compare properties before costs.

Net rental yield

Annual rent less all expenses, divided by total purchase cost. The most honest measure of return.

Cash flow analysis

Monthly rental income versus bond repayment and running costs — what lands in your pocket.

ROI

Total return on cash invested, combining rental income with expected capital growth.

What is a good rental yield?

✓ Healthy yield range

A gross yield of roughly 8–12% is considered good in the SA market, with net yields of 5–8% realistic after costs.

✕ Yield depends on area

Premium suburbs often deliver lower yields (3–6%) but stronger capital growth, so never judge yield in isolation.

Costs that reduce your net yield

Rates, taxes & levies

Municipal rates and sectional-title levies are ongoing costs the landlord carries.

Maintenance & insurance

Budget for repairs, building insurance and landlord cover throughout the year.

Management & vacancy

Rental agents charge ~8–12% of rent, and you should allow 1–2 months vacancy per year.

A sensible rule of thumb is to set aside 20–30% of rental income to cover total expenses.

Rental yield vs capital growth

Rental yield (income)

The annual income return on your property — strong yields mean better monthly cash flow.

Capital growth (wealth)

The rise in property value over time — high-growth areas build long-term wealth at lower yields.

The best buy-to-let decisions weigh total return — yield plus expected capital appreciation — against your goals.

Frequently asked questions

Quick answers to the most common questions.

What is the difference between gross and net rental yield?
Gross rental yield is your annual rental income divided by the property value, expressed as a percentage — it ignores costs. Net rental yield subtracts all running expenses (rates, levies, insurance, maintenance, management fees and vacancy) before dividing by the total purchase cost. Net yield is the more honest measure of what a buy-to-let property actually puts in your pocket.
What is a good rental yield in South Africa?
In the South African market a gross rental yield of roughly 8–12% is generally considered good, while net yields of 5–8% are realistic once expenses are deducted. Yields vary widely by area: lower-priced suburbs and student or rental-demand nodes often deliver higher yields, while premium areas tend to offer lower yields but stronger capital growth.
How do you calculate rental yield?
For gross yield, multiply your monthly rent by 12 to get annual rental income, divide it by the property value (or purchase price) and multiply by 100. For example, R10,000 a month on a R1,200,000 property is R120,000 ÷ R1,200,000 × 100 = 10% gross yield. For net yield, first subtract annual expenses from the rental income before dividing.
What costs reduce my rental yield?
Common expenses that eat into net yield include municipal rates and taxes, sectional-title levies, building and landlord insurance, ongoing maintenance and repairs, rental agent or property management fees (typically 8–12% of rent), and an allowance for vacancy between tenants. Budgeting 20–30% of rental income for costs is a sensible rule of thumb.
Is rental yield more important than capital growth?
Both matter and they often trade off. Rental yield is the income return you earn each year, while capital growth is the increase in the property’s value over time. High-yield properties give strong monthly cash flow; high-growth areas build long-term wealth but may run at lower yields. A good buy-to-let decision weighs your total return — yield plus expected capital appreciation — against your goals.

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