Money
Real Estate Investment Calculator
Enter property price, purchase costs, monthly rent, vacancy rate, and annual expenses to calculate gross yield, net yield, monthly cash flow, and payback period.
| Property Price |
JPY
|
|---|---|
| Purchase Costs |
JPY
|
| Monthly Rent Income |
JPY
|
| Vacancy Rate |
%
|
| Annual Expenses |
JPY
|
| Total Investment | [[ fmt(result.totalInvestment) ]] JPY |
| Annual Gross Income | [[ fmt(result.annualGrossIncome) ]] JPY |
| Annual Effective Income | [[ fmt(result.annualEffectiveIncome) ]] JPY |
| Annual Net Income | [[ fmt(result.annualNetIncome) ]] JPY |
Monthly rent by property price and gross yield
Back-calculated monthly rent required to hit each gross yield target (before vacancy and expenses).
| Price \ Yield | 3% | 4% | 5% | 6% | 7% | 8% | 10% |
|---|---|---|---|---|---|---|---|
| 1,000万JPY | 25,000 | 33,333 | 41,667 | 50,000 | 58,333 | 66,667 | 83,333 |
| 2,000万JPY | 50,000 | 66,667 | 83,333 | 100,000 | 116,667 | 133,333 | 166,667 |
| 3,000万JPY | 75,000 | 100,000 | 125,000 | 150,000 | 175,000 | 200,000 | 250,000 |
| 5,000万JPY | 125,000 | 166,667 | 208,333 | 250,000 | 291,667 | 333,333 | 416,667 |
| 10,000万JPY | 250,000 | 333,333 | 416,667 | 500,000 | 583,333 | 666,667 | 833,333 |
The figures above are derived from gross yield only. Use the calculator above to factor in vacancy rate and annual expenses for a realistic net yield.
Tips
- Gross yield ignores vacancy and running costs. For a realistic picture, always calculate net yield by factoring in a vacancy rate (typically 5–10%) and annual expenses such as management fees, repairs, and property tax.
- In Japan's major cities, a gross yield of 5–8% is a common benchmark for income-producing properties. Yields above 10% are often found in regional or older properties — higher returns typically come with higher vacancy and repair risk.
- A negative monthly cash flow doesn't always mean the investment is a loss. Depreciation deductions can create a tax benefit that more than offsets the shortfall on paper. Consult a tax professional to evaluate the full picture.
- The payback period shown assumes 100% equity financing. In practice, using a mortgage (leverage) can significantly boost your cash-on-cash return — provided the interest rate stays below the net yield.
- Location, building age, and tenant demand matter more than yield alone. A high gross yield in a low-demand area can quickly turn negative if the unit sits vacant for months at a time.
Frequently Asked Questions
Side Note — The Hidden Gap Between Gross and Net Yield
Almost every "yield" figure you see in a real estate listing is the gross yield — annual rent divided by purchase price, with no deductions whatsoever. It's a useful shorthand for quick comparisons, but it can be dangerously misleading. A 12% gross yield on a 30-year-old apartment block can easily shrink to 4–5% once you account for a 10% vacancy rate and annual expenses running at 20% of rental income.
Net yield (also called cap rate in the US context) divides net operating income by total acquisition cost, including purchase taxes, agent fees, and registration costs. In Japan, these transaction costs typically add 5–8% on top of the property price, which alone can shave 0.5–1 percentage point off the net yield versus gross yield.
A concept widely used among professional investors is the cash-on-cash return (CCR): annual cash flow after debt service divided by the equity you actually put in. When borrowing costs are lower than the property's net yield, leverage amplifies your equity return — this is called "positive leverage." The reverse is equally true: if your mortgage rate exceeds the net yield, every yen you borrow actually destroys value.