Rental Yield Calculator Pakistan: Gross, Net and After Inflation
Work out the gross and net rental yield on a house, flat, shop or plaza in Pakistan, after empty months, owner's costs and inflation.
A Rs 30,000,000 property let for Rs 100,000 a month earns 4% gross. With 11 months let and Rs 100,000 of yearly costs, it keeps Rs 1,000,000 a year, a net yield of 3.33%, or -6.93% after 10.26% inflation. The rent pays back the price in about 30 years.
- You keep 83.3%
- Costs and empty months 16.7%
If the property stands empty
| Months let | Rent after costs | Net yield | After inflation |
|---|---|---|---|
| 12 months | Rs 1,100,000 | 3.67% | -6.59% |
| 11 months You are here | Rs 1,000,000 | 3.33% | -6.93% |
| 10 months | Rs 900,000 | 3% | -7.26% |
| 9 months | Rs 800,000 | 2.67% | -7.59% |
| 6 months | Rs 500,000 | 1.67% | -8.59% |
Monthly rent needed for a net yield of
| Net yield | Rent a month |
|---|---|
| 4% | Rs 118,182 |
| 6% | Rs 172,727 |
| 8% | Rs 227,273 |
| 10% | Rs 281,818 |
Source: Your own price, rent and costs; inflation: PBS CPI, September 2026 (10.26% year on year)
How rental yield is worked out
Rental yield is a year’s rent as a share of what the property is worth. It lets you compare a flat, a shop or a house with any other place your money could go.
- Gross yield = rent for 12 months ÷ property price × 100. A Rs 3 crore flat let at Rs 100,000 a month has a gross yield of 4%.
- Net yield = (rent for the months it is actually let − the owner’s yearly costs) ÷ property price × 100. The same flat, let for 11 months with Rs 100,000 of costs, keeps Rs 1,000,000 a year: a net yield of 3.33%.
Net yield is the one to compare. Gross yield is what property ads and dealers quote, and it is always higher.
What should go into the costs?
- Repairs and painting between tenants.
- Provincial property tax (the yearly urban immovable property tax) and any society or maintenance charges you pay as owner.
- The agent’s fee for finding a tenant, often a month’s rent, spread over the years of the tenancy.
- Months the property stands empty. Enter these as fewer months let, not as a cost.
Leave out the price you paid to buy it and the advance tax on the purchase. Those are part of what the property cost, not yearly costs. Our property tax calculator works out the buyer’s and seller’s tax.
Is a good yield enough?
Compare the net yield with inflation, because the rent’s job is to keep your money’s value. The calculator subtracts the latest PBS inflation figure. If the result is below zero, the rent alone is not keeping up, and you are counting on the property’s price rising. Then compare it with what the same money earns elsewhere: a listed REIT such as Dolmen City REIT, which pays out its rent every quarter (see real estate vs DCR), or a savings scheme or fund (see ways to invest in Pakistan).
How is rental income taxed?
Since the Finance Act 2021, an individual’s rent is added to the rest of their income and taxed at the normal income tax slabs. In working out the taxable rent, section 15A of the Income Tax Ordinance allows deductions such as one fifth of the rent for repairs, insurance on the building, local taxes on the property, and profit paid on a loan taken to buy or build it. The calculator leaves income tax out because it depends on your other income.
If your tenant is the government, a company or another prescribed person, they deduct tax from the rent under section 155 and pay it to FBR. For an individual landlord the yearly rates are:
| Gross rent in the year | Tax deducted |
|---|---|
| Up to Rs 300,000 | Nil |
| Rs 300,001 to Rs 600,000 | 5% of the amount above Rs 300,000 |
| Rs 600,001 to Rs 2,000,000 | Rs 15,000 + 10% of the amount above Rs 600,000 |
| Above Rs 2,000,000 | Rs 155,000 + 25% of the amount above Rs 2,000,000 |
This deduction counts towards your final tax in your return. Landlords not on the Active Taxpayers List have it doubled (Tenth Schedule).
Common questions
How do I calculate rental yield in Pakistan?
Multiply the monthly rent by 12, divide by the property’s price and multiply by 100. That is the gross yield. For the net yield, use the rent for the months the property is actually let, take away the owner’s yearly costs (repairs, property tax, maintenance charges, agent’s fee), then divide by the price. The calculator does both and shows the result after inflation.
What is a good rental yield?
One that beats inflation after costs, and beats what the same money earns with less work. A net yield of 4% with inflation at 10% means the rent is losing value each year, and the investment only works if the property’s price rises faster than prices in general. Use the second table under the calculator to see the rent you would need for a 6%, 8% or 10% net yield.
Is rent taxable in Pakistan?
Yes. Rent is income from property and is added to your other income in your tax return. Tenants that are companies, the government or other prescribed persons deduct tax under section 155 before paying you, at nil up to Rs 300,000 a year and rising to 25% above Rs 2 million. That deduction is adjusted against the tax worked out in your return.
Sources
- Income Tax Ordinance 2001, sections 15, 15A and 155, First Schedule Part III Division V, Tenth Schedule rule 1.
- Finance Act 2026 (no change to the rent table). Inflation: Pakistan Bureau of Statistics monthly CPI.
Checked 22 October 2026.