Rental yield and ROI calculator for shoplots
Gross yield, net yield, cash flow and payback for a shop you plan to buy and rent out.
Yield and return
- Gross yield
- 6.00%
- Net yieldAfter vacancy and yearly costs, before loan
- 5.13%
- Net rental income
- RM 102,500/year
- Annual net cash flow
- RM 102,500/year
- Cash you put inPrice plus upfront costs
- RM 2,086,950
- Cash-on-cash ROI
- 4.91%
- Payback period
- 20.4 years
What does this mean?
Within the typical range for Klang Valley ground-floor shops.
Klang Valley ground-floor shops typically yield about 5% to 8% gross (PropertyGuru) and 3% to 5% net (IQI). Mature hubs such as SS2 can be about 4% gross. Check hub rents
For reference only, not legal, tax or financial advice. Rates can change; confirm with your lawyer, bank, tax adviser or LHDN before you sign or pay.
How it works
- Gross yield = monthly rent × 12 ÷ price
- Net rental income = monthly rent × (12 − vacancy months) − quit rent − assessment − insurance − maintenance
- Net yield = net rental income ÷ price
- Annual net cash flow = net rental income − loan repayments for the year
- Cash-on-cash ROI = annual net cash flow ÷ cash you put in (down payment, or full price if cash, plus stamp duty and legal fees)
- Payback years = cash you put in ÷ annual net cash flow
Need a realistic rent for the hub? Look it up in the Klang Valley shop rent index.
Worked example
RM 2,000,000 shoplot bought in cash, let at RM 10,000 a month, one month vacant a year, yearly costs RM 7,500 (quit rent RM 500, assessment RM 3,000, insurance RM 1,000, repairs RM 3,000):
- Gross yield: RM 120,000 ÷ RM 2,000,000 = 6.00%
- Net income: RM 110,000 − RM 7,500 = RM 102,500, net yield 5.13%
- With RM 86,950 stamp duty and legal fees, cash in is RM 2,086,950: cash-on-cash ROI 4.91%, payback about 20.4 years
Frequently asked questions
What is a good rental yield for a shop in the Klang Valley?
What is the difference between gross and net yield?
Why is my cash flow negative with a loan?
What counts as cash invested for cash-on-cash ROI?
Related guides
Want the numbers for a real shop?
Send us the unit or the area you are looking at. We will share the asking rent or price, recent comparables and what tenants in that hub usually pay.