# Rental yield in Singapore: gross vs net, and what to count

> How gross and net rental yield are worked out, which costs belong in the net figure, how Buyer's Stamp Duty changes the cost base, and what yield leaves out.

- Tool: [Rental Yield Calculator](https://toolsg.com/en/rental-yield-calculator)
- Language: en (available: en, zh)
- Last verified against official sources: 2026-10-28
- Source site: ToolSG — a planning guide, not official or financial advice. Cite the agencies listed under Sources.

## Key figures at a glance

| Fact | Value | Source |
| --- | --- | --- |
| Gross yield | Annual rent ÷ purchase price — Full-occupancy rent, the figure agents usually quote. |  |
| Net yield | (Rent collected − running costs) ÷ total cost to acquire — Total cost includes stamp duty and other upfront costs. |  |
| Buyer's Stamp Duty added | 1% to 6% progressive (residential) — Residential table from 15 Feb 2023. ABSD is not added automatically. | [IRAS](https://www.iras.gov.sg/taxes/stamp-duty/for-property/buying-or-acquiring-property/buyer's-stamp-duty-(bsd)) |
| Not deducted | Loan interest and income tax on rent — Yield is shown before financing and before tax. |  |

## Gross yield and net yield

**Gross yield** is a full year of rent divided by the purchase price. It is simple and comparable, but it ignores vacancy, running costs and stamp duty.

**Net yield** starts from the rent you actually collect, subtracts the costs of owning the property, and divides by what it cost you to acquire, not just the price:

| Step | Item |
| --- | --- |
| Rent collected | Monthly rent × (12 − vacant months) |
| Less running costs | Property tax + maintenance and fees × 12 + other yearly costs |
| = Net rental income | |
| Total cost to acquire | Price + Buyer's Stamp Duty + other upfront costs |
| Net yield | Net rental income ÷ total cost to acquire |

## Costs to count

- **Property tax.** A let-out home is taxed at the rate for non-owner-occupied residential property. Use the [property tax calculator](https://toolsg.com/en/property-tax-calculator).
- **Maintenance and fees.** Management, sinking fund and conservancy charges you pay.
- **Vacancy.** Gaps between tenants. One month a year is 8.3% of the rent.
- **Other.** Insurance, repairs and agent fees for finding tenants.

## Why stamp duty matters

Buyer's Stamp Duty is part of what you pay to own the property, so the net yield divides by price plus BSD. On a $1,000,000 home BSD is $24,600. If you pay ABSD, add it under other upfront costs; the [ABSD calculator](https://toolsg.com/en/absd-calculator) shows the amount.

## Worked examples

| Case | Gross | Net |
| --- | --- | --- |
| $1,000,000, $3,500 rent, 1 vacant month, $7,200 yearly costs, BSD included | 4.2% | 3.05% |
| $500,000, $2,000 rent, no vacancy or costs, $20,000 upfront, no BSD | 4.8% | 4.62% |

## What yield leaves out

- **Loan interest.** Use the [mortgage tools](https://toolsg.com/en/loan-repayment-calculator) to see cash flow after financing.
- **Income tax on rent.** Rental income is taxable; see the [income tax calculator](https://toolsg.com/en/income-tax-calculator).
- **Change in value.** A property can gain or lose value. Yield is only the income part of the return.

## Common mistakes

- **Comparing gross to net.** Compare like with like.
- **Ignoring vacancy.** A year with no gap is rare.
- **Leaving out stamp duty.** It can be a large part of the cost base.
- **Using asking rent.** Check what similar homes actually let for.

## Frequently asked questions

**What is the difference between gross and net rental yield?**

Gross yield uses full rent over the price. Net yield uses rent collected less running costs, over the total cost to acquire including stamp duty.

**Does the calculator include Buyer’s Stamp Duty?**

Yes, if the box is ticked, using the residential BSD table. ABSD is not added automatically.

**Is mortgage interest deducted?**

No. The yield is before financing, so you can compare properties regardless of the loan.

**How do I allow for months without a tenant?**

Enter the vacant months per year. Rent collected is reduced accordingly in the net yield.

**What is the payback period?**

The total cost to acquire divided by the net rental income per year. It ignores any change in the property’s value.

**Is this financial advice?**

No. These are estimates from the figures you enter.


## Sources

- [IRAS — Buyer's Stamp Duty (BSD)](https://www.iras.gov.sg/taxes/stamp-duty/for-property/buying-or-acquiring-property/buyer's-stamp-duty-(bsd)) — Residential BSD bands used for the acquisition cost.