Property & finance
Calculation method and formula
Annual net rent ÷ (Target yield [%] ÷ 100)
Understand the inputs
- Annual net rent
- Use a measured value or your own assumption.
- Target yield
- Unit: %. Use a measured value or your own assumption.
Assumptions and limitations
This directly capitalizes the annual net rent entered. It does not replace assessment of property condition, land value, tenancy law or formal market valuation.
The formula uses the specified units. Displayed numbers are rounded; whole packs, item counts and full time periods may also be rounded within the calculation.