Gross vs net rental yield
Rental yield tells you how much rent a property earns each year as a percentage of what it cost. It is simple arithmetic – no official rates are involved, except the optional stamp duty, which uses our stamp duty calculator's rates.
- Gross yield = (monthly rent × 12) ÷ purchase price.
- Net yield = (rent actually received − yearly running costs) ÷ (purchase price + purchase costs).
Rent actually received = monthly rent × (12 − vacant months). Running costs are whatever you as owner pay: management fees, rates and government rent (if not paid by the tenant), repairs, insurance and letting fees. Net yield here is before property tax and mortgage interest.
Worked example
Flat bought for $8,000,000, let at $24,000 a month, one month vacant a year, $2,000 a month management fee, $10,000 a year other costs, $40,000 legal and agency fees on purchase.
- Gross yield: $288,000 ÷ $8,000,000 = 3.60%
- Rent received: $24,000 × 11 = $264,000; running costs $24,000 + $10,000 = $34,000; net income $230,000
- Stamp duty at 3% = $240,000, so total outlay = $8,000,000 + $40,000 + $240,000 = $8,280,000
- Net yield: $230,000 ÷ $8,280,000 = 2.78%
What this calculator does not cover
- Property tax on the rent – use the property tax calculator.
- Mortgage interest and leverage (return on your own cash) – see the mortgage calculator.
- Capital growth or loss, and the non-residential stamp duty scale.
Frequently asked questions
What is a good rental yield in Hong Kong?
There is no official benchmark. Compare the net yield with what you could earn elsewhere, such as deposit rates, after allowing for vacancy and costs.
Should I use gross or net yield?
Net yield is more realistic because it accounts for vacancy, running costs and the cost of buying. Gross yield is quick for comparing listings.
Does the yield include property tax?
No. Property tax is 15% of the net assessable value for individual owners; use our property tax calculator to estimate it.
Why does stamp duty matter?
It is part of what you pay to own the property, so including it in the outlay gives a truer net yield.
Official sources
Every figure on this page was checked against these pages on 21 Oct 2026.