Rental Yield vs ROI vs Capital Gain: What’s the Difference?
Last reviewed
-
Rental Yield is the annual rental income expressed as a percentage of the property price. It's useful for assessing cash flow and income potential. Both gross and net rental yields should be calculated to understand your investment.
-
ROI (Return on Investment) considers total profit—including rental income, capital appreciation, and expenses—relative to your total investment.
-
Capital Gain is the profit made when you sell a property for more than you paid.
Each metric highlights a different aspect of investment performance: income, total return, and long-term value growth.
Still not sure how it applies to you?
Every deal has a detail the general answer does not cover. Put yours to a broker who closes them weekly.