Rental Yield Calculator (Philippines)

Rental yield is the percentage of a property's purchase price returned annually as rent. In the Philippines, condos in Metro Manila typically yield 5-7% gross and 4-6% net. Houses yield lower (3-5%) but appreciate faster. This calculator computes both gross yield (annual rent ÷ price) and net yield (after vacancy, HOA, real property tax, and maintenance) to show real cash-on-cash return.

Source: Housal active-listing benchmarks (2026); BIR RPT schedule.

Gross Yield
6.00%
Annual rent ÷ Property price (no costs/vacancy)
Net Yield
4.75%
Average yield

In Philippine real estate, gross yields of 5-7% are common for condos in BGC/Makati; houses typically yield 3-5%. Net yields below 4% suggest the property may be overpriced for rental purposes — consider negotiation or seek alternative inventory.

Frequently asked questions

What is rental yield?

Rental yield is the annual rental income divided by the property purchase price, expressed as a percentage. It measures how much income the property generates relative to its cost.

What is gross vs net yield?

Gross yield uses raw annual rent (12 × monthly rent). Net yield deducts vacancy, HOA dues, real property tax, and maintenance to reflect actual cash flow.

What is a good rental yield in the Philippines?

In Metro Manila, condos typically yield 5-7% gross / 4-6% net. Houses yield lower (3-5%) but appreciate faster. Below 4% net is considered weak — likely overpriced or oversupplied.

Why do BGC condos have lower yields than provincial?

High-demand areas have inflated purchase prices that outpace rent growth. A ₱15M BGC condo renting for ₱60K/month yields ~4.8% gross; a ₱4M Cebu condo at ₱20K/month yields ~6%.

Should I include capital appreciation?

Yield only measures income. Total return = yield + appreciation. In high-growth areas (BGC, McKinley) appreciation can add 5-10%/year, making total returns competitive even at lower yields.

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