The rent comes in. How much actually stays?

Three figures that answer different questions

Gross rental yield = monthly rent × 12 ÷ purchase price × 100. It assumes a full paid year and deducts no costs.

Net operating yield = (rent collected after vacancy − entered running costs) ÷ purchase price × 100. It excludes financing and income tax, so it is not the percentage earned on your deposit.

Cash flow after financing = rent collected − running costs − full loan payments. The average monthly result divides this annual amount by 12; actual rent and expense dates can make individual months very different.

A 4.8% gross yield with a cash shortfall

The editable example uses a RM500,000 price and RM2,000 monthly rent. The scheduled annual rent is RM24,000, giving 4.8% gross yield.

One vacant month reduces collected rent to RM22,000. RM300 monthly running costs plus RM2,200 other annual costs leave RM16,200 before financing: a 3.24% net operating yield.

Loan payments of RM1,800 a month total RM21,600. The result is a RM5,400 annual cash shortfall, averaging RM450 a month before income tax. The rent needed to cover this entered budget over 11 paid months is RM2,490.91 a month. These are illustrative figures, not a property forecast.

Which costs belong in the calculation?

Use monthly costs for service charge, sinking fund and other regular ownership expenses. Use annual costs for a budget covering assessment, quit rent, insurance, routine repairs, letting fees and similar items. Do not enter the same charge in both places.

Full loan payments belong in the financing field. Principal repayment reduces your outstanding debt but still takes cash from your account. Refundable tenant deposits do not belong in rent.

Maybank’s home-investment tool also distinguishes rent and ownership expenses. Our formulas and scope are stated here; no universal target yield is assumed. Reference checked 14 September 2026.

What this result cannot establish

Is the break-even rent achievable?

The calculator cannot establish that. It divides your entered costs and loan payments by the paid months. Market rent needs separate evidence for the property, condition and lease terms.

What happens if it is empty all year?

Rent collected is zero. Running costs and loan payments continue, and no break-even monthly rent is shown because there are no paid months.

Is this my total investment return?

No. Purchase fees, major renovation, personal income tax, changes in property value and sale proceeds are excluded. This is a rental operating and financing scenario, not a forecast or investment recommendation.