Rental income
Rental Yield Calculator Malaysia
Calculate the Yield — Then Understand What It Really Means.
Rental yield is useful for comparing property income. But the headline percentage does not tell you how much rent you keep, how financing affects your cash position or what return you may earn on your actual capital. Start with the yield. Then analyse the full investment.
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Last updated: September 2026
Free quick calculator
Estimate gross and net rental yield.
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Quick Rental Yield Calculator
How gross rental yield works
Start with the formula.
- Property price: RM500,000
- Monthly rent: RM2,000
- Annual rental income: RM24,000
- Gross Rental Yield = RM24,000 ÷ RM500,000 × 100 = 4.8%
Gross rental yield excludes vacancy, operating expenses and financing. It measures rental income against property value and nothing more.
Illustrative example only. Actual results depend on the information and assumptions used.
What gross yield leaves out
The costs behind the headline.
A gross yield figure does not account for vacancy, maintenance, sinking fund, assessment, quit rent, insurance, repairs, management-related costs or other recurring ownership expenses. Each of these reduces what the property actually retains.
Net rental yield
Income after vacancy and expenses.
Annual Rental Income − Vacancy / Lost Rent − Operating Expenses = Estimated Net Operating Income. Estimated Net Rental Yield = Net Operating Income ÷ Property Value × 100.
- Annual rental income: RM24,000
- Vacancy / lost rent: RM1,000
- Operating expenses: RM4,000
- Estimated net operating income: RM19,000
- Property value: RM500,000
- Estimated net rental yield: 3.8%
Illustrative example only. Actual results depend on the information and assumptions used.
Gross yield vs net yield vs cash flow
Three views of the same property.
Gross Yield
Rental income relative to property value. Useful for fast comparison between properties.
Net Yield
Rental income after vacancy and operating expenses. Reflects property-level performance.
Cash Flow
What remains after costs and financing. Reflects the investor's monthly position.
Key insight: a property can show a positive gross yield, a positive net yield and still produce negative monthly cash flow.
Financing changes the investor experience
Yield describes the property. Financing describes your position.
Financing affects the upfront cash required, the monthly loan commitment, Cash-on-Cash Return, Return on Equity and monthly cash flow. Rental yield describes rental-income performance; financing changes what the investment feels like for the investor.
What is a good rental yield in Malaysia?
There is no universal target.
A meaningful assessment depends on the property price, location, property type, expected vacancy, recurring expenses, financing structure, cash required, holding period, your objective and the alternative uses of your capital.
Instead of only asking “Is this yield good?”, ask “What does this yield mean for the complete investment?”
See What the Yield Means for the Full Investment
Move beyond the headline percentage and analyse financing, monthly cash flow, Cash-on-Cash Return, IRR, NPV and exit scenarios.
Related: Property Investment Calculator Malaysia · Property Cash Flow Calculator Malaysia
FAQ
Common questions.
How do I calculate rental yield?
A common gross rental yield formula is annual rental income divided by property value, multiplied by 100.
What is the difference between gross and net rental yield?
Gross rental yield uses rental income before vacancy and operating expenses. Net rental yield considers those factors.
Does rental yield include the housing loan?
Rental yield and financing answer different questions. Loan commitments affect investor cash flow, while rental yield describes rental-income performance.
Can a property have positive rental yield but negative cash flow?
Yes. Financing and other commitments can cause a monthly top-up even when rental income is positive.
Does AngkaHarta recommend a target rental yield?
No. AngkaHarta helps users understand a property's financial characteristics rather than prescribing one universal target.
Go Beyond the Headline Yield
Understand what the rental income means after vacancy, property expenses, financing and the rest of the investment are considered.