Advanced Rental Yield Calculator Pakistan
A reliable tool by Avenir Developments to calculate rental yield and ROI for your property in Pakistan. Quickly determine the profitability of your real estate investment and make smart financial decisions with our calculator.
- Tailored to the Pakistani Market
- Simple & Intuitive
- Actionable Insights
What is rental yield?
Rental yield is the rent a property earns in a year, shown as a percentage of what the property cost. It puts a house, an apartment, a shop or an office in Pakistan on equal terms, whatever their price, so you can compare them as investments.
Gross yield is the year's rent divided by the property price, multiplied by 100. Net yield first deducts the share of the year the property is likely to stand empty and the annual cost of keeping it, such as maintenance and property tax. Net yield is closer to what you actually keep, and it is the fairer figure for comparing two properties.
Rent after vacancy is the year's rent less the share of the year you expect the property to be empty. Annual costs cover maintenance, repairs and property tax.
Both results are estimates for comparing options. They are not financial or tax advice.
How to use the rental yield calculator
-
Property price
Enter the price you paid, or the price you expect to pay.
-
Monthly rent
Enter the rent you receive now, or a realistic figure for that area and property type.
-
Vacancy and costs
Optional. Add a vacancy rate and your annual maintenance and tax costs to see a net figure.
-
Calculate
Select Calculate Yield to see gross and net yield together.
Run it twice. Once with the rent you hope for and once with a cautious figure. The gap between the two results shows how much your decision depends on that one assumption.
What yield does not show
Yield compares income with price at a single moment. Before you commit, weigh these as well.
- Capital appreciation
- The change in the property's market value over the years you hold it. A lower-yield property can still be the stronger investment if its value grows faster, and a high yield can hide a falling price.
- Location growth
- Planned roads, commercial areas and the possession of neighbouring phases change both rent and resale demand. Check what is planned and when it is due, not only what stands there today.
- Development potential
- Whether the plot allows added floors, a rebuild or a change of use under the society's byelaws, with authority approval. Where it does, a well-planned building can earn rent from more floor area on the same land. Check house construction costs before you count on it.
- Taxes and transfer costs
- Society transfer fees, withholding tax on purchase and sale, capital gains tax and annual property tax all reduce your return. Rates change with federal and provincial budgets, so confirm the current figures for your tax year.
- Liquidity
- How quickly you could sell at a fair price if you needed the money. Clear title, possession status and demand in that particular block all affect it.
Planning to build for rental income
Much of what a plot can earn is set at the design stage: how many units it holds, how much covered area the byelaws allow and what each square foot costs to build. Avenir's architects can review your plot, the rules that apply to it and a construction budget before you commit to a design.
Rental Yield Calculator Pakistan
This is the total amount you paid or plan to pay for buying the property. Rent you are receiving or expecting from your tenant every month. Estimated % of the year your property might remain empty. For example, use 10 if vacant 1 month/year. Yearly maintenance or tax costs for the property (leave blank if none).Get a Personal Project Plan in Minutes
Choose a service. We’ll reply on WhatsApp with a budget range and next steps.
- Architecture Services
- Interior Design Services
- Construction Services
- Design + Build Services