Rental Yield Calculator Malaysia
Work out gross and net rental yield on a Malaysian property, after maintenance, sinking fund, quit rent, assessment, insurance and vacancy.
Gross yield
5.28%
Net yield
3.76%
Estimate only. Gross yield is annual rent divided by purchase price; net yield deducts vacancy and the holding costs above. It does not include loan repayments, income tax on rent, agent or letting fees, repairs, or furnishing. Default costs are illustrative: check the actual maintenance charge, quit rent and assessment bills for the unit.
Gross vs Net Rental Yield
| Measure | Formula |
|---|---|
| Gross yield | Monthly rent × 12 ÷ purchase price × 100 |
| Net yield | (Annual rent − vacancy − holding costs) ÷ purchase price × 100 |
See which areas deliver the strongest returns in our best rental yield areas in KL guide, or check what nearby homes actually sold for.
Frequently Asked Questions
How do you calculate rental yield?
Gross rental yield is the annual rent divided by the purchase price, times 100. A RM500,000 condo let at RM2,200 a month earns RM26,400 a year, a 5.28% gross yield. Net rental yield first deducts the costs of holding the property and any months it sits empty: with RM6,000 a year of costs, the same unit nets RM20,400, a 4.08% net yield.
What costs should I deduct for net yield in Malaysia?
For a strata unit, the big ones are the monthly maintenance (service) charge and the sinking fund, which is usually 10% of the service charge. Add quit rent (cukai tanah) to the state, assessment (cukai taksiran) to the local council, and fire or houseowner insurance. Maintenance and sinking fund are due even while the unit is vacant, so allow for vacancy separately.
What is a good rental yield in Malaysia?
In Klang Valley, gross yields for condos typically run between 3% and 6%, with smaller units near transit, universities or expat hubs at the higher end and large family units and landed homes lower. After costs, net yield is usually 1 to 1.5 percentage points below gross. Compare net yield against your loan rate to see whether the property pays for itself.
Does this include my loan repayment or income tax?
No. Yield measures the property's return on its price, independent of how you finance it. Loan repayments, income tax on rental income, agent or letting fees, repairs and furnishing are not included. Rental income is taxable, but many holding costs are deductible against it.