How to Use the Rent vs Deposit Return Calculator
Compare annual income from two landlord strategies: collecting monthly rent versus accepting a large up-front deposit and reinvesting it. The deposit strategy earns interest from reinvestment; the rent strategy earns steady monthly income. This tool shows which generates more per year under current rate conditions.
When savings rates are high, reinvesting a large deposit may outperform monthly rent. When rates are low, monthly rent often wins. Rental yield is calculated as annual rent divided by net capital outlay (deposit amount minus security deposit).
Frequently Asked Questions
When savings rates are high, reinvesting a lump-sum deposit can earn more. When rates are low, monthly rent provides steadier cash flow. Use this calculator to compare under current rate conditions.
Rental yield = Annual Rent ÷ (Property Value − Security Deposit) × 100%. It measures the annual income return on the net capital invested.
No. Rental income taxes and capital gains are not factored in. Consult a tax advisor for your specific situation.