How to Calculate Rental Yield in Singapore: Cost Guide by Homejourney

To calculate rental yield in Singapore, first work out your expected annual rent, then divide it by either your property price or total cash outlay, and multiply by 100 to get a percentage. For a safe, realistic view of your property ROI Singapore, serious investors on Homejourney focus on net rental yield, which deducts all ongoing costs such as taxes, maintenance, interest, and vacancy before working out your rental return.[1][3][4]

This How to Calculate Rental Yield in Singapore Cost Guide is a focused cluster article that supports our main pillar guide on Singapore property investment. It zooms into the numbers behind rental yield so that first-time buyers, upgraders, and investors on Homejourney can make safe, transparent and well‑informed decisions before committing to any property.

What is Rental Yield and Why It Matters in Singapore (2024–2025)

Rental yield is the percentage return you earn from renting out a property, based on either the purchase price or your total cash invested.[1][3][4] It tells you how hard your money is working compared to alternatives like T‑bills or REITs.

In 2025, average gross rental yields in Singapore hover around the mid‑3% range, with some districts like Newton/Novena and city-fringe areas slightly higher or lower depending on unit type and age.[7][9] With elevated interest rates and cooling measures still in place, understanding how to calculate rental yield accurately is essential to avoid over‑leveraging or over‑paying for a low‑yield asset.

On the ground, I see this play out clearly in areas like Paya Lebar and Queenstown. Newer one‑bedroom condos can rent quickly to young professionals, but after factoring in higher maintenance fees and ABSD for multiple properties, the actual rental return can be closer to 2–2.5% net instead of the 4%+ gross yield commonly marketed.[4][5] Homejourney focuses on this full‑cost view to protect users from misleading headline numbers.

Key Rental Yield Formulas: Gross vs Net vs Cash-on-Cash

1. Gross Rental Yield (Quick Snapshot)

Gross rental yield is your annual rental income divided by the property purchase price, expressed as a percentage.[1][2][3]

Formula:
Gross Rental Yield = (Annual Rental Income ÷ Property Purchase Price) × 100[1][3]

Example (Typical East Coast 2‑bedder):

Purchase price: S$900,000 (older 2‑bedder near Eunos MRT)
Monthly rent: S$3,000 (after checking transacted rents on Projects Directory and recent listings on Property Search )
Annual rent: S$3,000 × 12 = S$36,000

Gross yield = (36,000 ÷ 900,000) × 100 = 4.0%[1][3]

Use gross rental yield only as a first filter. It ignores all costs and can be misleadingly high for properties with heavy maintenance or high stamp duties.

2. Net Rental Yield (Realistic Rental Return)

Net rental yield deducts all annual costs from your rental income before dividing by the property price.[1][3][4] This is the figure experienced Singapore investors use to compare properties.

Formula:
Net Rental Yield = [(Annual Rent − Annual Costs) ÷ Property Purchase Price] × 100[1][3][4]

Annual costs typically include:[1][3][4][5]

Mortgage interest (not principal)
Property tax (non‑owner‑occupied residential rates via IRAS)
Condo maintenance / MCST fees or Town Council S&CC for HDB
Insurance (fire/landlord insurance)
Agent commissions (e.g. one month’s rent for a 1‑year lease)
Repairs & aircon servicing (regular servicing from Aircon Services )
Vacancy buffer (1–2 months of lost rent per year)

Example (Based on a real Kovan 1‑bedder case):

Purchase price: S$720,000 (small condo near Kovan MRT)
Monthly rent: S$2,200 → Annual rent = S$26,400 (be conservative and use S$25,000 to account for vacancy)[4]
Property tax: ~S$2,400/year (non‑owner‑occupier, AV ≈ S$24,000)[4]
Maintenance + minor repairs: S$3,400/year[4]
Agent fee: S$2,200 (one month’s rent)[4]
Interest portion of loan (first year): ~S$10,600[4][5]

Net annual rental income before tax = S$25,000 − 2,400 − 3,400 − 2,200 − 10,600 ≈ S$6,400[4][5]

Net rental yield = (6,400 ÷ 720,000) × 100 ≈ 0.9% on purchase price (about 2.1% if calculated against total cash outlay as 99.co demonstrates).[4]

This is why Homejourney always encourages users to input all recurring costs when using any rental yield or ROI calculator.

3. Cash-on-Cash Return / Net Yield on Cash Outlay

Many Singapore investors prefer to measure yield against their total cash outlay rather than the headline purchase price.[4][5] This gives your cash-on-cash return or net return on investment (ROI).

Formula:
Net Rental Yield on Cash = (Net Annual Rental Income ÷ Total Cash Outlay) × 100[4][5]

Total cash outlay usually includes:[4][5]

Downpayment (cash + CPF)
Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) if applicable
Legal fees & conveyancing
Renovation and furnishings
Misc. upfront costs (e.g. valuation fees)

Using the previous S$720,000 condo example, 99.co estimated total cash outlay at around S$302,600 (downpayment, BSD, ABSD, renovation, legal, tax), giving a net rental yield of about 2.1% on cash.[4]

Step-by-Step: How to Calculate Rental Yield in Singapore (Cost Guide)

Step 1: Estimate Realistic Rental Income

Start by checking recent transactions and current asking rents for similar units:

Use Projects Directory to review each condominium’s past transacted rents and unit mix.
Filter live listings on Property Search to see current asking rents for comparable units in the same block or neighbouring projects.
Walk the area at night (e.g. Punggol, Jurong East, Tanjong Pagar) to gauge tenant profile and demand—units near MRT exits (usually 5–7 minutes’ sheltered walk) rent faster.

Take a conservative rent (often S$100–S$300 below optimistic listings) and assume 1–2 months of vacancy each year for private condos and central HDBs.[4][5]

Step 2: List All Annual Operating Costs

Key Singapore‑specific costs to include:[1][3][4][5]

Mortgage interest: Check latest bank package rates via Bank Rates or Mortgage Rates .
Property tax: Use IRAS’s online calculator (non‑owner‑occupier rates are higher for rentals).
Maintenance fees: MCST fees for condos can range from S$250–S$500/month for small units in newer projects.
Town Council S&CC (for HDB flats): Especially for older estates like Ang Mo Kio or Bedok.
Insurance: Landlord or fire insurance, especially important for older walk‑up apartments.
Repairs & servicing: Budget S$800–S$1,200 per year for repairs and regular air‑conditioning servicing through Aircon Services .
Agent fees: Typically 1 month’s rent for a 1‑year lease, 2 months for a 2‑year lease, plus GST.