Rental Yield vs ROI vs Capital Gain: What’s the Difference?

• 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.