The short answer
Gross rental yield = yearly rent ÷ property price × 100. Net yield subtracts empty months and running costs such as repairs, property tax and society charges. A PKR 2 crore house renting at PKR 90,000 a month has a gross yield of 5.4%.
Gross and net yield
- Gross yield = monthly rent × 12 ÷ price.
- Net yield = (monthly rent × months actually let − yearly costs) ÷ price.
- Payback = price ÷ net yearly income — how many years of rent repay the price.
Net yield is the figure that matters: a property that sits empty for two months a year or needs regular repairs earns noticeably less than its headline rent suggests.
Rent versus growth
Residential rent in Pakistan usually returns less per year than capital growth in a developing society, which is why many buyers hold plots rather than houses. A house earns steady rent but needs upkeep. Compare both with the Investment ROI tool.
How to use the rental yield
- 1Enter the property price and monthly rent.
- 2Enter how many months a year it is usually empty.
- 3Enter yearly running costs — repairs, tax, society charges.
- 4Read gross yield, net yield and payback years.
Frequently asked questions
+What is a good rental yield in Pakistan?
It varies by city and property type. Compare the net yield with bank deposit rates and with expected capital growth to judge whether renting out is worthwhile.
+How is rental yield calculated?
Yearly rent divided by the property price, times 100. Net yield first subtracts vacancy and running costs.