Rental yield calculator
See the gross and net rental yield on a Nepal property, from its value, the monthly rent and your annual running costs.
Every field is editable. Gross yield is annual rent divided by property value, net yield subtracts your annual expenses first, both are only as accurate as the figures you enter.
Property and rent
Current market value, or the price you paid, whichever you want the yield measured against.
Rent you charge (or expect to charge) per month, before any expenses are deducted.
A single yearly total for maintenance, property/malpot tax, insurance and any other running costs. Leave blank or 0 to see gross yield only.
Net rental yield
2.70%
Gross yield 3.00%, before expenses
Annual rent income
Rs 3,00,000
Net annual income
Rs 2,70,000
Gross yield
3.00%
Gross yield ignores running costs, net yield subtracts your annual expenses total, both are computed against the property value you enter above. Neither figure accounts for vacancy periods, financing costs or capital appreciation.
An indicative estimate only, based on the figures you enter. Actual returns depend on how reliably the property stays rented, how accurately you have estimated ongoing costs, and how the property's value moves over time. This is not investment advice.
Rent and running costs, weighed against the property's value
Three steps turn your inputs into gross and net yield percentages.
Enter the property value
Use current market value or your purchase price, whichever matches the question you're trying to answer, since the yield is measured against this figure.
Enter the monthly rent
The rent you charge or expect to charge each month. Multiplied by 12, this becomes the annual rent income used in both yield figures.
Add up a year of expenses
Maintenance, property/malpot tax, insurance and any other running cost you pay yearly, combined into one annual total, gives you the net yield after real costs.
Before you can weigh net yield accurately, you need to know what your annual property tax bill actually is, our guide on paying land and property tax (malpot) in Nepal walks through who collects what and how it's assessed.
Rental yield, answered
What is a good rental yield in Nepal?+
There is no single official benchmark for Nepal, residential yields vary a lot by city, neighbourhood and property type, and no consistent published dataset tracks them the way it does in more mature property markets. Internationally, a gross yield in the 5 to 8% range is often considered reasonable for residential property, while Kathmandu's high purchase prices relative to typical rents tend to push many residential yields below that range, and well-located commercial space can run noticeably higher. Rather than relying on one national number, compare this property's computed yield against similar rentals in the same area, and weigh it alongside the price you'd be paying to buy.
What's the difference between gross and net yield?+
Gross yield is simply annual rent divided by the property's value, it tells you the raw rental return before anything is subtracted. Net yield subtracts your annual running costs, maintenance, property/malpot tax, insurance and similar, from that rent before dividing by the property value, so it reflects what you actually keep. Net yield is always the more honest number for comparing two properties or deciding whether a rental makes financial sense, gross yield is faster to calculate but can make a property look better than it really is.
Does this account for property tax (malpot)?+
Only if you include it. This calculator asks for a single annual expenses figure, and you decide what goes into it, property/malpot tax, integrated property tax from your municipality, maintenance, insurance or anything else you pay yearly to hold and maintain the property. It does not look up or estimate that tax for you. For help understanding how land tax and municipal building tax are assessed and paid, see our guide on paying land and property tax in Nepal.
Should I use market value or purchase price?+
Either works, but be consistent with what you're trying to answer. Using your original purchase price shows the yield on what you actually invested, useful for tracking your own return over time. Using today's market value shows the yield you'd get buying the property now, useful for comparing it against other properties currently on the market or deciding whether to sell. If the property has appreciated significantly since you bought it, the two figures can differ a lot, so pick the one that matches the decision you're making.
Sources & data note
This calculator applies two standard rental-yield formulas, gross yield as annual rent divided by property value, net yield as (annual rent minus annual expenses) divided by property value, to the figures you enter. It carries no live property listing or rent data for Nepal, all inputs are yours to set. This is not investment advice, confirm local rents and your actual costs before relying on this figure.