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Rental yield & ROI calculator

See what a property actually returns once service charges and purchase costs are taken off. The return is measured against what you spend in total, not against the asking price.

Return on investment

Estimate the annual return on a buy-to-let purchase.

AED 10,000
AED 1,000AED 500,000
AED 1,000
AED 0AED 50,000
AED 100,000
AED 50,000AED 10,000,000
6.25%
1%15%

Transaction costs as a share of the price — land department fee, agency commission and trustee fees combined.

Annual return

8.47%

Net rent as a share of the total purchase cost.

Gross annual rent
AED 10,000
Net annual rent
AED 9,000
Purchase costs
AED 6,250
Total cost
AED 106,250

Estimates for guidance only. Rents, service charges and transaction costs vary by building and by deal.

Common questions

Is rental yield measured against the price or against what I actually spent?

Against what you spent. Dividing net rent by the asking price ignores the transaction costs and always flatters the result — on this calculator’s defaults it reads 9.00% instead of the correct 8.47%. The figure here is net rent over the total outlay: price plus costs.

What does the cost multiplier cover?

Every one-off cost of buying, rolled into a single percentage of the price: the land department fee, the agency fee and the registration trustee fee. The 6.25% default is close to the itemised total for a cash purchase, which works out at about 6.6% on a property at AED 1 million.

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