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Rental yield calculator · intelligentprop.com/tools/rental-yield-calculator
Rental yield calculator
Gross yield is a year's rent as a share of the price. Net yield takes off fees and running costs first, and is the figure worth comparing.
R
R
1 month
R
Levies, rates, insurance and upkeep.
10% of income
Net yield
4.91%
After fees and running costs
Gross yield
6.37%
Income before any costs
- Rental income a year
- R605,000
- Fees
- – R60,500
- Running costs
- – R78,000
- Net income a year
- R466,500
With a bond
30%
10.75%
- Bond repayment a month (20 years)
- R67,513
- Monthly cash flow after the bond
- – R28,638
Looking for a home that lets well? We know which addresses hold their tenants.
Talk to usHoliday rates on our rental listings are quoted per night, week or season, so check the basis before comparing.
How it is calculated
Gross yield is annual rental income divided by the purchase price. Net yield takes off letting or management fees and the running costs (levies, rates, insurance and upkeep) before dividing.
For a long let, income is the monthly rent times the months it is let. For a holiday let, it is the nightly rate times the nights booked across the year.
Cash flow then subtracts a bond repayment over 20 years, so you can see whether the rent carries the loan.
Questions people ask
What is a good rental yield in Cape Town?
It depends on the area and the type of home: prime Atlantic Seaboard homes are bought as much for capital growth and lifestyle as for income. Compare net yields, after costs, rather than gross yields.
Will holiday letting change my municipal rates in Cape Town?
It can. Under the City of Cape Town’s 2026/27 Rates Policy, a property available for short-term letting for more than half of its annual room nights is rated as business and commercial property, at 2.41 times the residential rate. The City says the change in rating category applies from 1 July 2027.
Do I need to register a holiday let in Cape Town?
Not yet. The City published a draft Short-Term Letting By-law that would require every short-term let to be registered and the registration number shown on listings. Public comment closes on 5 October 2026, and it is not yet law.
Is gross or net yield more useful?
Net yield. Two homes with the same gross yield can differ widely once levies, rates, fees and empty months are taken off.
Sources
- City of Cape Town: Rates Policy 2026/27Checked 3 October 2026
- City of Cape Town: Draft Short-Term Letting By-law (public participation)Checked 3 October 2026
Results are estimates to help you plan. They are not financial, tax or legal advice.