Rental Yield Calculation Guide: How much should you charge to make your investment worthwhile? 🧮
Rental Yield is the primary indicator used by real estate investors worldwide to measure the profitability of purchasing property for rent. Simply put, it tells you what percentage of your investment returns as rental income each year. It’s easy to calculate, and once you understand it, you can compare different projects more strategically.
3 Ways to Calculate Rental Yield
📊 Gross Rental Yield: Calculates rent against the purchase price for a rough estimate, ideal for quick preliminary comparisons between projects.
📊 Net Rental Yield: Deducts actual expenses such as common area fees, insurance, and maintenance, providing a more accurate figure.
📊 Cash on Cash Rental Yield: Measures the return based on the actual cash invested, suitable for those using bank loans.
Today, let’s start with the first formula 👇
📐 Gross Rental Yield Formula
(Annual Rent ÷ Purchase Price) x 100 = % Yield
🧮 Example
You buy a condo for 3,500,000 THB and rent it out for 20,000 THB per month.
Annual Rent = 240,000 THB
Yield = (240,000 ÷ 3,500,000) x 100 = 6.86% per year
📌 Basic Benchmarks to Know
Below 4%: Think carefully before investing.
5 to 7%: A good range, usually higher than typical bank deposit interest rates.
7% and up: Excellent, though rarely found in the general market.
So, what are the numbers like in Pattaya?
According to data from Global Property Guide (August 2026), the average Gross Rental Yield in Thailand is 6.54%. Chonburi (Pattaya) averages 6.10%, which is close to the national average and higher than Bangkok (5.93%) and Phuket (5.60%). In the Bang Lamung district, smaller units offer more outstanding yields: studios at approximately 7.96%, 1-bedroom condos at about 8.71%, and 2-bedroom units at about 6.40%, while units with 3 bedrooms or more range from about 3.4% to 4.9%.
Keep in mind, these are Gross figures.
The numbers above represent returns before deducting expenses. The actual Net Yield is usually about 1.5 to 2% lower than the Gross. Furthermore, these are calculations based on market-advertised prices and rents, not guaranteed returns for any specific project.
At The Property 999, we provide consultation based on reliable sources and offer straightforward, honest advice. If you want to know what yield your interested project might offer, feel free to contact us and let us help you calculate it! 🤗
Reference: Global Property Guide (August 2026)
*Investment involves risk. Investors should thoroughly study all information before making a decision.
*Simulated image for editorial purposes.
