Rental yield calculator
Estimate how much a rental property earns in Paraguay, after vacancy, maintenance, management, insurance, and property tax.
Estimated yield
Months per year unrented — 8% ≈ about one month.
Annual repairs and improvements as % of price.
If managed by an agency; 0% if you self-manage.
Reference: Gs fixed deposit ~7%, USD savings ~5%, local treasury bills ~7%.
Annual rent ÷ price.
NOI ÷ price (after all expenses).
Years to recoup the price from NOI alone.
| Gross annual rent | PYG 42,000,000 |
| Vacancy loss | −PYG 3,360,000 |
| Management | −PYG 3,091,200 |
| Maintenance | −PYG 5,000,000 |
| Insurance | −PYG 1,500,000 |
| Property tax | −PYG 1,500,000 |
| Net operating income (NOI) | PYG 27,548,800 |
Assumptions: insurance 0.3%/yr, effective property tax 0.3%/yr (1% on estimated fiscal value).
Estimate only. Real vacancy, maintenance, and management fees vary by zone and property type.
How rental yield is measured
There are two standard ways to measure how a rental property performs:
- Gross yield = (annual rent ÷ property price). Quick to compute, ignores expenses.
- Net yield (cap rate) = (NOI ÷ property price), where NOI is net operating income — rent minus vacancy, maintenance, management, insurance, and property tax.
In Paraguay healthy net yields typically run 5%–8%. Below 4%, the investment underperforms a guaraní fixed deposit. Above 8% usually comes with more risk (less consolidated zone, unfinished property, short-term-rental).
Frequently asked questions
What's a good cap rate in Paraguay?
Reference: under 4% is weak (less than a guaraní fixed deposit); 4-6% is average; 6-8% is solid; over 8% usually comes with higher risk or is short-term-rental.
Why does the calculator subtract vacancy and management?
Because you almost never have the property rented 100% of the time, and you rarely manage it for free (your time, or a fee). An honest cap rate includes both.
What if I'll rent it on Airbnb?
Short-term rentals tend to gross more but carry much higher vacancy, management, cleaning, and wear. This calculator targets traditional long-term rentals.
Does this account for property appreciation?
No. It's just annual cash flow. Pure cap rate ignores appreciation because you want to know if the rent alone justifies the investment.
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Sources and references
Rates and ranges used as reference.
Last updated: May 5, 2026