Lease Yield Calculator

Calculate Lease Yield



Formula

The formula to calculate the Lease Yield (Y) is:

\[ Y = \left( \frac{R}{V} \right) \times 100 \]

Where:

What is Lease Yield?

Lease yield, also known as rental yield, is a measure of the annual rental income generated by a property as a percentage of its value. It is a key metric used by real estate investors to assess the profitability of a property investment. A higher lease yield indicates a more profitable investment, while a lower lease yield suggests a less profitable one. Lease yield helps investors compare different properties and make informed decisions about where to invest their money.

Example Calculation

Let's assume the following values:

Using the formula:

\[ Y = \left( \frac{12,000}{200,000} \right) \times 100 = 6\% \]

The Lease Yield (Y) is 6%.