Rental Yield & Gap Calculator
Enter purchase price, deposit, monthly rent and loan to instantly get <strong>gross yield, real (net) yield, the gap and your actual cash invested</strong> — covering both monthly-rent yield and jeonse gap investing.
※ Gross yield = annual rent ÷ price; net yield = (annual rent − costs − loan interest) ÷ equity. Results vary with taxes, vacancy, fees and loan terms. For reference, 2026 average new mortgage rates are about 4.3%/yr. For guidance only; returns are not guaranteed.
🔒 Inputs are calculated in your browser and never sent to a server.
Gross yield vs. real (net) yield
Gross yield = annual rent ÷ purchase price × 100 and ignores loans, taxes and fees, so it's handy for quickly comparing listings. Real (net) yield = (annual rent − annual costs − loan interest) ÷ equity × 100, where equity is the cash you actually put in (price minus loan and deposit). Gross yield measures the property; net yield measures your money. Shortlist with gross yield, then decide with net yield.
Equity (cash invested) and leverage
Equity = purchase price − loan − deposit. Borrowing more shrinks your equity, so the same net income divides into a smaller base and net yield rises — the leverage effect. But loans carry interest (loan × rate), and if the rate exceeds the gross yield, leverage works against you. Korea's average new mortgage rate in 2026 is roughly 4.3%, so enter your real rate to see the interest-adjusted yield.
Gap investing and the 'gap'
In jeonse gap investing you buy a home that already has a jeonse tenant, so gap = purchase price − deposit is the cash you need. With no monthly rent, gross yield is near zero and returns come from price appreciation, not rent. Watch for 'reverse jeonse' risk: if deposits fall you may need extra cash to repay the tenant, so plan a buffer.
What belongs in annual costs
Include holding taxes (property tax, comprehensive real-estate tax), management and repair fees, insurance, brokerage fees and a vacancy allowance. Acquisition tax is a one-time upfront cost, not annual — in 2026 it is 1-3% for a single home and 8-12% for multi-home or corporate buyers. Rates and interest change often, so confirm exact figures with the tax office and a professional. This tool gives estimates only.
Frequently asked questions
Should I look at gross yield or real (net) yield?
Use <strong>gross yield</strong> (rent ÷ price) to compare listings fast, and <strong>real net yield</strong> (after loan interest, taxes and fees, divided by your equity) for the final decision. Look at both: more leverage can push net yield above gross yield, but if your loan rate is higher than the gross yield, net yield drops instead.
What is the 'gap' and how much cash do I actually need?
<strong>Gap = purchase price − deposit</strong>. On a 500M-won flat with a 400M-won jeonse deposit, the gap is 100M won; with no loan that 100M is also your equity. Budget extra for acquisition tax and brokerage, and keep a buffer for <strong>reverse jeonse</strong> if deposits fall.
Should taxes like acquisition and property tax be included?
Yes. Put annual <strong>property and comprehensive real-estate tax</strong> in annual costs. One-time <strong>acquisition tax</strong> (2026: 1-3% single-home, 8-12% multi-home/corporate) is upfront capital, so add it to equity or the first-year cost. Rates change often — verify with the tax office.
Is my data sent to a server?
No. Price, deposit, rent, loan and every input are calculated <strong>entirely in your browser</strong> and never sent to or stored on a server.