Price from Target Yield

Choose the yield you want and see what price fits.

Monthly rent ($)

Tenant deposit (refundable deposit paid by the tenant)

Target yield per year (%)

Yields to compare (%, example values · change them as you like)

Current asking price (optional · shows the current yield and how far the asking price is from each fair price)

Loan

Purchase costs (optional: taxes, agent fees and so on as an amount)

Apply the general Korean acquisition tax rate of 4.6% for shops and officetels (example)

Vacant months (per year, optional)

A simple pre-tax yield. Income tax, repairs and management fees are not included (acquisition tax is included only if you switch it on, as a general-rate example), and vacancy counts only the months you enter. This is a calculation tool, not investment advice.

About the Price from Target Yield

How to use it

Enter the rent you can collect and the deposit.
Enter the yearly yield you want.
Press Calculate to see the price that delivers it.

Formula

Price = (monthly rent × 12) ÷ target yield + deposit − purchase costs

Example

Rent 2 per month, deposit 50, target 6%

You can invest 400

Price 450

With a loan

The target applies to your own money after interest (interest only is assumed).
If the interest is as large as the rent income, there is no answer.

Compare more

Put several values in the Yields to compare boxes to see the fair price for each one side by side.
Enter the current asking price to see the yield at that price and how far it is above or below each fair price.
The 3, 4 and 5% in the table are example values, not market averages. Change them as you like.
Amounts use the currency of the country selected at the top.

Frequently asked questions

How is the price found?

Price = (monthly rent × 12) ÷ target yield + deposit − purchase costs. Dividing the yearly rent by the target gives the amount you invest; adding the tenant's deposit gives the price.

What changes with a loan?

Enter the loan and yearly rate. Interest is subtracted from the rent and the target yield is applied to your own money. Interest-only payments are assumed.

What target yield should I use?

There is no right answer. It depends on the place, the type of building, loan rates and vacancy risk, so try several values and compare the prices.

Why does it say it cannot calculate?

It cannot answer when the rent is 0, the target is 0 or below, or the loan interest is as large as the rent income. Change the numbers and try again.

Is what I enter stored on a server?

No. Everything is calculated inside your browser. Nothing you enter is sent to or stored on any server.