🏠 Property Tool

Rental Yield Calculator

Calculate gross yield, net yield, and cash-on-cash return for rental properties across Africa. Built for African property markets.

🏡 Property Details
💸 Annual Expenses
Council rates, land tax, etc.
Budget ~1–2% of property value
Agent fees, typically 8–12% of rent
% of year property is vacant
Utilities, levies, admin, etc.
💳 Financing (Optional)
Leave 0 if bought cash
Total annual bond repayments
📊 Your Rental Yield Results
Gross Yield
—
Before expenses
Net Yield
—
After all expenses
Annual Net Income
—
After expenses & vacancy
Cash-on-Cash Return
—
On cash invested
Yield Quality 0%
0%Poor <4%Fair 4–6%Good 6–8%Excellent 8%+
ItemAmount
🤖 AfroTools AI Insight

📍 Typical Gross Yields by Market

🇳🇬 Lagos, Nigeria5–8%
🇰🇪 Nairobi, Kenya5–7%
🇿🇦 Cape Town, SA4–6%
🇿🇦 Johannesburg, SA5–7%
🇬🇭 Accra, Ghana6–9%
🇪🇬 Cairo, Egypt4–6%
🇲🇦 Casablanca, Morocco5–7%

💡 Understanding Yield

Gross Yield = (Annual Rent ÷ Property Value) × 100. Simple but ignores costs.

Net Yield = ((Annual Rent − All Expenses) ÷ Property Value) × 100. More realistic.

Cash-on-Cash Return = Net Income ÷ Cash Invested. Best for leveraged purchases.

❓ Common Questions

What's a good rental yield in Africa? +
Generally, 6–8% gross yield is considered good in most African cities. Net yields above 5% are strong given local mortgage rates. Lagos and Accra often deliver higher yields than Cape Town or Cairo due to higher rental demand relative to property prices.
Should I use gross or net yield? +
Always use net yield for real investment decisions. Gross yield is a quick filter — if gross yield is below 5%, net yield will likely be negative or very low. Use net yield to compare properties properly.
What vacancy rate should I use? +
5–10% is standard in most African cities. Use 5% for high-demand areas (Nairobi CBD, Victoria Island Lagos), 10–15% for lower-demand areas or new developments still filling up.
How do I improve my rental yield? +
Negotiate a lower purchase price, increase rent (furnished vs unfurnished), reduce vacancy through better tenant screening, self-manage to save agent fees (8–12%), or convert to short-term Airbnb rental in tourist areas.