Rental Yield Calculator — Is Your Property a Good Investment?
How to calculate if your property generates a good rental yield in Pakistan. Comparison tables and benchmarks.
By ilaan Editorial Desk
Updated 4 Jul 2026
What is Rental Yield?
Rental yield is the annual rental income as a percentage of property value. It measures how much cash income your property generates relative to its cost — independent of appreciation.
Gross vs Net Yield
Gross yield = (Annual rent / Property price) × 100. Simple but doesn't account for costs.
Net yield = ((Annual rent - Annual costs) / Property price) × 100. More accurate — includes vacancy, maintenance, taxes.
Pakistan Rental Yield Benchmarks 2026
Premium residential (DHA/Bahria): 3-4.5% gross. Established residential (Gulberg/Model Town): 4-5.5%. Affordable residential (Johar Town/Iqbal Town): 5-7%. Commercial (MM Alam/DHA commercial): 5-8%. Student housing near universities: 6-9%.
Worked Example: 5 Marla House, Johar Town
Property value: PKR 1.8 Cr. Monthly rent: PKR 75,000. Annual rent: PKR 9 lakh.
Gross yield: 9/180 × 100 = 5%.
Annual costs: Property tax PKR 15,000 + Maintenance PKR 30,000 + 1 month vacancy PKR 75,000 = PKR 1.2 lakh. Net annual income: PKR 7.8 lakh. Net yield: 7.8/180 × 100 = 4.33%.
Is 4.33% a Good Yield?
Compare to: Pakistan T-bills (2026): ~11%. Bank deposits: ~10%. Gold: ~15-18% (but volatile). Property at 4.33% net yield PLUS ~12% appreciation = ~16-17% total return. This beats T-bills when including appreciation. Pure yield without appreciation: not competitive with T-bills at current rates.
How to Improve Your Yield
- Furnished rental: add 30-50% to rent, 20-30% more cost
- Short-term rental: higher daily rates but higher vacancy and management cost
- Commercial conversion (where zoning allows): 2x residential yield
- Student housing near universities: high demand, reliable income
