Rental Yield Calculator

Calculate gross and net rental yield on your Nigerian property investment. See annual income and monthly cash flow after expenses.

Property Investment Details

Property Value

₦

Annual Rent Income

₦

Annual Expenses (maintenance, tax, insurance)

₦

Gross Rental Yield

6.00%

Net Rental Yield

5.00%

Annual Net Income

₦2,500,000

Monthly Cash Flow

₦208,333

Annual Rent

₦3,000,000

Annual Expenses

₦500,000

Extended

Area Yield Comparison & Cap Rate Analysis

See how your yield compares to benchmark areas across Lagos, and understand the cap rate vs T-bill risk premium.

Typical gross yields by Lagos area (your yield: 6.00%):

Ikoyi

4.5% yield / avg ₦250,000,000

5% yield / avg ₦180,000,000

Lekki

5.5% yield / avg ₦80,000,000

Ikeja

6.5% yield / avg ₦50,000,000

Surulere

7% yield / avg ₦35,000,000

Yaba

7.5% yield / avg ₦30,000,000

Professional

Full Rental Income Statement & Cash-on-Cash Return

Complete NOI calculation with vacancy, management fees, maintenance reserve, and cash-on-cash return on your down payment.

Vacancy Rate

Maintenance Reserve

% of rent

Property Management Fee

% of rent

Insurance (annual)

₦

Rental Income Statement (Annual)

Gross Potential Rent

₦3,000,000

Vacancy Loss (8%)

-₦240,000

Effective Gross Income

₦2,760,000

Maintenance (5% of rent)

-₦150,000

Management Fee (10%)

-₦276,000

Insurance

-₦150,000

Property Tax (Lagos est.)

-₦38,000

Total Operating Expenses

-₦614,000

Net Operating Income (NOI)

₦2,146,000

Cap Rate

4.29%

How to Use This Calculator

Enter the property value (purchase price or current market value), annual rent income (what tenants pay per year), and annual expenses (maintenance, property tax, insurance, management fees). The calculator shows both gross and net rental yield.

The Formula

Gross Yield = (Annual Rent ÷ Property Value) × 100 Net Yield = ((Annual Rent − Annual Expenses) ÷ Property Value) × 100 Annual Net Income = Annual Rent − Annual Expenses Monthly Cash Flow = Annual Net Income ÷ 12

Example

Residential Property in Lekki, Lagos

Property Value₦50,000,000

Annual Rent (3-bedroom flat)₦3,000,000

Annual Expenses (maintenance + tax)₦500,000

Gross Rental Yield6.0%

Net Rental Yield5.0%

Monthly Net Cash Flow₦208,333

A 5–6% net yield is considered good for Nigerian residential real estate. Commercial properties in prime Lagos locations can achieve 8–12% yields. Compare against Treasury Bill rates (~22%) to assess whether the property premium (liquidity, capital appreciation) justifies lower yields.

FAQ

Nigerian rental yield benchmarks: High-end Lagos residential (VI, Ikoyi, Banana Island): 3–5% gross — premium locations with capital appreciation. Mid-range Lagos/Abuja residential: 5–8% gross. Commercial properties (offices, shops): 7–12% gross. Short-let / serviced apartments: 10–20% gross (but higher management costs and vacancy risk). Compare net yield (after expenses) against risk-free alternatives like Treasury Bills (~22% in 2026) — a large premium makes sense only if you expect significant capital appreciation.

Common annual property expenses: Land Use Charge / property tax (0.04–0.13% of value), maintenance and repairs (1–2% of value, higher for older buildings), property management fees (5–10% of annual rent), insurance, service charge (for estate developments), vacancy allowance (budget 1–2 months empty per year), and legal/agency costs for tenant changeover. Many property investors in Nigeria underestimate expenses — use 15–25% of gross rent as a safe total expense budget.

Total property return = rental yield + capital appreciation. Lagos prime locations have seen 10–25% annual capital appreciation in Naira terms (though less in USD). Mid-range areas typically appreciate 8–15% annually. This means total Naira returns can be 15–25% even with modest 5% yield. However, capital appreciation is unrealised until sale, illiquid, and not guaranteed. Yield is the reliable, spendable component — don't rely on appreciation alone to justify an investment.