Free Tool · Zamai Property Partners
Rental Yield Calculator Pakistan
Calculate gross rental yield, net rental yield, annual rent, monthly cash flow, and estimated payback period for houses, plots, shops, and apartments across Multan and Pakistan. A smarter way to spot real returns before you buy.
How to use this rental yield calculator
- Enter the property purchase price — use the expected final price, not just the asking price.
- Enter expected monthly rent — check current rents for similar properties in the same area.
- Add annual expenses — property tax, maintenance, vacancy buffer, agent fees, service charges.
- Add initial extra costs — transfer fees, stamp duty, renovation, and any one-time agent commission.
- Read your yields and payback — gross yield, net yield, monthly cash flow, and years to recover your investment all update instantly.
Rental yield formula
Gross rental yield divides annual rent by the property price and multiplies by 100. Net rental yield subtracts annual expenses from the rent and uses the total investment (price plus one-time costs) in the denominator. Net yield is the number that actually matters to your wallet.
Worked example
A 10-Marla house in Model Town, Multan priced at PKR 1.75 Crore (17,500,000) rents for PKR 85,000 per month. Annual rent is PKR 1,020,000, so the gross rental yield is about 5.83%. After PKR 120,000 in yearly expenses and PKR 350,000 in one-time costs (transfer, light renovation), net annual income is PKR 900,000 against a total investment of PKR 17,850,000 — a net yield of about 5.04% and a payback of roughly 19.8 years on rental income alone. Capital appreciation, if any, comes on top of that.
Typical rental yield ranges in Pakistan
Yields vary by city, area, building age, and tenant demand. These ranges give you a sanity check — anything well below the floor of its category is a weak deal; well above the ceiling deserves extra due diligence.
| Property Type | Typical Gross Yield | Notes |
|---|---|---|
| Residential house | 3% – 5% | Lower in premium areas, higher in mid-tier suburbs. |
| Apartment / flat | 5% – 8% | Often the highest residential yield in big cities. |
| Commercial shop | 6% – 10% | Depends heavily on footfall and location. |
| Office space | 6% – 9% | Linked to corporate demand in business districts. |
| Empty plot | 0% | No rent. Returns come from appreciation only. |
Use these as a sanity check, not as guaranteed returns. Always confirm rents with at least two local agents and verify expenses before committing.
Tips to improve your rental yield
- Buy below market. Live auctions and motivated sellers improve yield more than rent hikes ever do.
- Reduce vacancy. A property empty for two months a year loses about 17% of its annual rent.
- Choose tenant-ready finishes. Clean paint, working fixtures, and basic kitchen upgrades shorten vacancy.
- Bundle service charges. Make tenants responsible for utilities and minor maintenance where the contract allows.
- Re-check rent yearly. Rents in Pakistan often lag inflation — a small annual increase keeps yield from drifting down.
Rental yield glossary
- Gross rental yield
- Annual rent as a percentage of property price, before any expenses. Quick comparison number.
- Net rental yield
- Annual rent minus all expenses, as a percentage of total investment (purchase price plus one-time costs). The real return.
- Annual expenses
- Yearly costs of owning and renting out a property: property tax, maintenance, vacancy buffer, agent management fee, society or service charges, insurance.
- Initial extra costs
- One-time costs at purchase: transfer fee, stamp duty, registration, agent commission, renovation, and furnishing.
- Cash flow
- Net rental income left in your pocket each month after all expenses. Positive cash flow means the property pays you while you hold it.
- Payback period
- Estimated years for rental income alone to repay your total investment. Lower is better; ignores future appreciation.
- Capital appreciation
- The increase in the property’s market value over time. Separate from rental yield and not included in this calculator.
Browse rental-friendly areas in Multan
Higher-yield rental zones in Multan tend to be near universities, hospitals, and main roads. Browse listings by area:
- Shalimar Colony
- Model Town
- Zakariya Town
- Bahadurpur
- Northern Bypass
- Gulgasht Colony
- Gulshan Bashir
- Fatima Avenue
Frequently asked questions
What is a good rental yield in Pakistan?
For residential houses, anything above 4% gross is usually considered acceptable, and 5%+ is good. Apartments and commercial properties tend to deliver higher yields — 6% to 10% gross is common. Empty plots have zero rental yield and rely entirely on appreciation.
What is the difference between gross and net rental yield?
Gross yield uses total rent before expenses. Net yield subtracts annual costs such as repairs, vacancy, service charges, property tax, and management fees. Net yield is closer to your real return.
Should I use asking price or final purchase price?
Use the expected final negotiated price when possible. Asking price gives a quick estimate, but final price reflects the actual investment and produces a more accurate yield.
Does this calculator include property value growth?
No. This tool focuses purely on rental income. Capital appreciation is separate and can boost total return, but it is not guaranteed and varies wildly across Pakistani cities and years.
How do I calculate rental yield in PKR?
Multiply monthly rent by 12 to get annual rent. Divide by the property price and multiply by 100. For example, PKR 85,000 per month is PKR 1,020,000 per year; on a PKR 1.75 Crore house, that’s 1,020,000 ÷ 17,500,000 × 100 = 5.83% gross yield.
Is rental yield better than capital appreciation?
They serve different goals. Rental yield pays you while you hold the property (income). Capital appreciation pays you when you sell (growth). Strong investments offer both. In Pakistan, plots tend to rely on appreciation; apartments tend to be yield plays.
What expenses should I include in annual costs?
Property tax, maintenance and repairs, society or service charges, insurance, agent management fee (typically one month’s rent per year), and a vacancy buffer of about one month’s rent.
Why is my payback period so long?
Pakistani residential property typically pays back in 15–25 years on rental income alone. That sounds long because most of the real return comes from capital appreciation, not rent. If you need faster payback on income, look at apartments and commercial property.