How to Calculate Rental Yield in Singapore: A Step-by-Step Guide
Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
Property is the largest purchase most Singaporeans make, and stamp duties, loan limits and cash requirements are front-loaded. Small mistakes in these figures can mean a shortfall at completion, so it pays to run the numbers before you commit to an option to purchase.
What you need
- Property price (S$)
- Monthly rent (S$)
- Annual costs (S$)
Step by step
- Enter the property price (S$).
- Enter the monthly rent (S$).
- Enter the annual costs (S$).
- The results update as you type, or press Calculate.
- Read the gross rental yield first, then the supporting figures below it.
The formula
Gross yield = annual rent ÷ price; net yield = (annual rent − annual costs) ÷ price.
Worked example
For example, with these inputs:
- Property price (S$): 1,100,000
- Monthly rent (S$): 3,800
- Annual costs (S$): 9,000
the calculator returns:
- Gross rental yield: 4.15%
- Net rental yield: 3.33%
- Net annual income: S$36,600.00
A second example
Now change the inputs to:
- Property price (S$): 1,375,000
- Monthly rent (S$): 3,800
- Annual costs (S$): 9,000
the calculator returns:
- Gross rental yield: 3.32%
- Net rental yield: 2.66%
- Net annual income: S$36,600.00
Practical tips
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
- Stamp duty is based on the purchase price or market value, whichever is higher.
- Seller's Stamp Duty can wipe out the gains on a quick resale, so check your holding period before selling.
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
Background
The Total Debt Servicing Ratio limits monthly debt repayments to 55% of gross monthly income for any property loan, and the Mortgage Servicing Ratio limits the housing instalment to 30% of income for HDB flats and new executive condominiums. Banks apply a medium-term interest rate in these tests rather than the rate you will actually pay.
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
Singapore's property market is shaped by cooling measures introduced since 2009, including Additional Buyer's Stamp Duty, loan-to-value limits and debt servicing ratios. These rules are adjusted when the market runs hot, so the numbers you see today may differ from what friends paid a few years ago.
Related calculations
- Property Affordability Calculator: Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
Want to skip the arithmetic? The free Rental Yield Calculator does all of this instantly and updates as you type.
Run your own numbers: Rental Yield Calculator