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Net Rental Yield Formula

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Net Rental Yield is the annual rental income generated from a property after subtracting expenses, expressed as a percentage of the property's cost. Check FAQs
NRY=((ARI-AE)⋅(1PV))⋅100
NRY - Net Rental Yield?ARI - Annual Rental Income?AE - Annual Expenses?PV - Property Value?

Net Rental Yield Example

With values
With units
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Here is how the Net Rental Yield equation looks like with Values.

Here is how the Net Rental Yield equation looks like with Units.

Here is how the Net Rental Yield equation looks like.

4.0658Edit=((50000Edit-33000Edit)⋅(1418120Edit))⋅100
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Net Rental Yield Solution

Follow our step by step solution on how to calculate Net Rental Yield?

FIRST Step Consider the formula
NRY=((ARI-AE)⋅(1PV))⋅100
Next Step Substitute values of Variables
∴ NRY=((50000-33000)⋅(1418120))⋅100
Next Step Prepare to Evaluate
∴ NRY=((50000-33000)⋅(1418120))⋅100
Next Step Evaluate
∴NRY=4.06581842533244
LAST Step Rounding Answer
∴NRY=4.0658

Net Rental Yield Formula Elements

Variables
Net Rental Yield
Net Rental Yield is the annual rental income generated from a property after subtracting expenses, expressed as a percentage of the property's cost.
Symbol: NRY
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Net Rental YieldOpen Variable
Annual Rental Income
Annual Rental Income refers to the total amount of rental revenue that a property generates over the course of one year.
Symbol: ARI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Annual Rental IncomeOpen Variable
Annual Expenses
Annual Expenses refer to the total costs incurred over a year for maintaining and operating a property or business.
Symbol: AE
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Annual ExpensesOpen Variable
Property Value
Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.
Symbol: PV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Property ValueOpen Variable

Other formulas in Mortgage and Real Estate category

​Go Cost Approach Appraisal
PV=RC-D+VL
​Go Vacancy Rate
VR=UVacant⋅100UTotal
​Go Gross Income Multiplier
GIM=PSPEGI
​Go Effective Gross Income
EGI=GRI+OI-VBD

How to Evaluate Net Rental Yield?

Net Rental Yield evaluator uses Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100 to evaluate the Net Rental Yield, The Net Rental Yield is the annual rental income minus expenses, divided by the property's cost, expressed as a percentage. Net Rental Yield is denoted by NRY symbol.

How to evaluate Net Rental Yield using this online evaluator? To use this online evaluator for Net Rental Yield, enter Annual Rental Income (ARI), Annual Expenses (AE) & Property Value (PV) and hit the calculate button.

FAQs on Net Rental Yield

What is the formula to find Net Rental Yield?
The formula of Net Rental Yield is expressed as Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100. Here is an example- 4.065818 = ((50000-33000)*(1/418120))*100.
How to calculate Net Rental Yield?
With Annual Rental Income (ARI), Annual Expenses (AE) & Property Value (PV) we can find Net Rental Yield using the formula - Net Rental Yield = ((Annual Rental Income-Annual Expenses)*(1/Property Value))*100.
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