Rental Yield in Singapore: 5 Mistakes to Avoid
Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees. The maths is not complicated, but a handful of errors come up again and again in this and related property & hdb calculations. Here is what to watch for.
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stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
Beyond the price, buyers should budget for legal fees, valuation, home insurance, renovation and furnishing. Running the figures in advance helps you decide how much cash to hold back and whether a smaller loan or longer tenure makes more sense.
1. Overlooking other costs
Legal fees, valuation, fire insurance, renovation and agent fees all add to the total outlay.
2. Using the price instead of the higher valuation
Stamp duty is charged on the higher of price or market value.
3. Using the advertised interest rate for affordability
Banks apply a stress-test rate to TDSR and MSR calculations.
4. Ignoring SSD when selling early
Selling within four years of buying (for purchases from 4 July 2025) attracts Seller's Stamp Duty.
5. Forgetting the cash portion
Part of the downpayment must be in cash, and CPF cannot be used for it.
The correct method
Gross yield = annual rent ÷ price; net yield = (annual rent − annual costs) ÷ price.
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
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%.
The Rental Yield Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Rental Yield Calculator