How to Calculate ROI on Phuket Property: 2026 Workbook
Gross vs net yield, occupancy, management fees, purchase costs, and total return for Phuket condos, step-by-step with Kamala example and realistic ranges.
How to Calculate ROI on Phuket Property?
Quick answer: Gross yield = (annual rental income ÷ purchase price) × 100. Net yield subtracts management (15-20% of gross), CAM, insurance, maintenance reserve, and vacancy. A well-managed Phuket condo showing 9% gross often lands near 6.5-7% net. Total ROI adds indicative capital growth, never trust brochure occupancy alone.
Hub: Part of the Phuket Property Investment Master Guide 2026. For yield benchmarks by area, use the KEEP pillar Phuket rental yield guide, this page is the calculation workbook, not a duplicate yield encyclopedia.
MORE Group builds ROI models from operating statements where available, not renderings. Management fee detail: what is Phuket property management fee. Purchase cost stack: Phuket property taxes and fees complete guide.
How Do You Calculate Gross Yield?
How Do You Calculate Gross Yield on How to Calculate ROI on Phuket Property means underwriting 7 to 9% gross yield and 5 to 7% net after operator fees on typical Phuket entry pricing entry ($80k to $200k), with CAM near ฿30 to ฿45 per sqm monthly in net models. MORE Group Phuket case study data from 2024 shows managed 1-bedroom stock at 72 to 78% blended occupancy under professional operators.
Formula: Gross Yield (%) = (Annual Rental Income ÷ Purchase Price) × 100
Worked example: 1-bedroom Kamala, 48 sqm
| Item | Value |
|---|---|
| Purchase price | $185,000 |
| Average nightly rate | $110 high / $75 low (blended model) |
| Occupied nights/year | 260 (**71% occupancy) |
| Annual gross rental income | $24,050 |
| Gross yield** | 13.0% |
71% occupancy assumes a licensed building with professional management, not owner DIY with irregular calendars. Stress-test **60% and 75% in parallel columns.
How Do You Calculate Net Yield?
How Do You Calculate Net Yield on How to Calculate ROI on Phuket Property means underwriting 7 to 9% gross yield and 5 to 7% net after operator fees on typical Phuket entry pricing entry ($80k to $200k), with CAM near ฿30 to ฿45 per sqm monthly in net models. MORE Group Phuket case study data from 2024 shows managed 1-bedroom stock at 72 to 78% blended occupancy under professional operators.
| Expense category | Amount | % of gross |
|---|---|---|
| Management fee (18% of gross) | $4,329 | 18% |
| CAM (70 THB/sqm/mo × 48 × 12) | $696 | 2.9% |
| Building insurance | $300 | 1.2% |
| Maintenance reserve (1% of value) | $1,850 | 7.7% |
| Vacancy (in 71% occupancy) | Included | , |
| Total operating costs** | $7,175 | 29.8% |
| Net annual income | $16,875 | , |
| Net yield | 9.1% | , |
This example is strong, many projects deliver 5.5-7% net after honest occupancy. Lower-tier buildings or self-management with gaps often land lower.
How Do You Combine Income and Appreciation for Total ROI?
How Do You Combine Income and Appreciation for Total ROI on How to Calculate ROI on Phuket Property means underwriting 7 to 9% gross yield and 5 to 7% net after operator fees on typical Phuket entry pricing entry ($80k to $200k), with CAM near ฿30 to ฿45 per sqm monthly in net models. MORE Group Phuket case study data from 2024 shows managed 1-bedroom stock at 72 to 78% blended occupancy under professional operators.
| Return component | Annual | 5-year cumulative (illustrative) |
|---|---|---|
| Net rental income | $16,875 (9.1%) | $84,375 |
| Capital appreciation (8% indicative) | $14,800 | $85,954 |
| Combined | $31,675 (17.1%) | $170,329 on $185K |
Appreciation is not guaranteed. Use 0%, **5%, and 8% appreciation scenarios. Off-plan may show paper gains during construction, verify developer delivery history before counting it.
What Purchase Costs Belong in Year-One ROI?
What Purchase Costs Belong in Year-One ROI on How to Calculate ROI on Phuket Property means underwriting 7 to 9% gross yield and 5 to 7% net after operator fees on typical Phuket entry pricing entry ($80k to $200k), with CAM near ฿30 to ฿45 per sqm monthly in net models. MORE Group Phuket case study data from 2024 shows managed 1-bedroom stock at 72 to 78% blended occupancy under professional operators.
| Cost | Indicative amount |
|---|---|
| Transfer fee (2% of assessed value) | ~$1,850 |
| Specific Business Tax (if applicable, 3.3%) | ~$3,100 |
| Legal fees | $800-$1,500 |
| Furniture / fit-out (if bare) | $5,000-$15,000 |
| Total one-time** | ~$11,000-$22,000 |
Effective cost base on a $185K unit with $18K costs = $203K, year-one net yield drops slightly. From year two onward, yield-on-cost improves if income stabilises.
Full fee context: Phuket property taxes and fees.
How Does Cash-on-Cash Return Work for Off-Plan?
How Does Cash-on-Cash Return Work for Off-Plan on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
Example $185K condo:
| Payment stage | Cash out |
|---|---|
| Reservation | $5,000 |
| SPA deposit (30%) | $55,500 |
| Construction milestones (40%) | $74,000 |
| Transfer (30%) | $55,500 |
During construction, appreciation (if any) accrues on full value while cash deployed ramps, amplifying cash-on-cash in the build phase on paper. Delay risk can erase this; see Phuket developer escrow guide. Deposit timing: how much deposit for Phuket property.
What ROI Ranges Are Realistic by Property Type in 2026?
What ROI Ranges Are Realistic by Property Type in 2026 on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Property type | Gross yield | Net yield | Appreciation (indicative) | Total ROI band |
|---|---|---|---|---|
| Bang Tao condo (hotel program) | 8-12% | 6-9% | 8-12% | 14-21% |
| Kamala managed condo | 7-10% | 5.5-8% | 7-10% | 12-18% |
| Rawai long-term rental | 6-8% | 5-6.5% | 6-8% | 11-14.5% |
| Villa leasehold (managed) | 5-8% | 4-6.5% | 5-8% | 9-14.5% |
Red flag: Any model using 100% peak-season occupancy at maximum ADR, split high/low season explicitly.
Which Buyer Scenarios Change the Spreadsheet?
Which Buyer Scenarios Change the Spreadsheet on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Scenario | Modelling note |
|---|---|
| Owner uses unit 60 nights/year | Subtract nights from rental calendar |
| All-cash buyer | Ignore mortgage, focus net yield |
| FX-funded foreign buyer | Add THB conversion sensitivity |
| Long-term lease only | Lower gross, lower opex intensity |
For investors comparing short-stay vs monthly, tenant acquisition affects occupancy, how to find good tenant Phuket condo.
What Checklist Should You Run Before Trusting a ROI PDF?
What Checklist Should You Run Before Trusting a ROI PDF for foreign buyers on How to Calculate ROI on Phuket Property means confirming 49% quota in writing, SPA milestones tied to construction, and net yield after 20 to 25% operator fees before any reservation fee. MORE Group Phuket files stress-test at 70 to 80% peak occupancy using 2024 to 2025 sister-unit data, not brochure ADR alone.
Insider tip: Developers sometimes quote guaranteed return programs, read clawback clauses and compare to unmanaged resale units. See what is a guaranteed return Phuket condo.
What Does This Mean for Buyers in 2026?
What Does This Mean for Buyers in 2026 on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
How does seasonal variation affect ROI?
How does seasonal variation affect ROI on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Season | Months | Typical occupancy | ADR multiplier |
|---|---|---|---|
| High | Nov-Apr | 75-90% | 1.0-1.3× base |
| Shoulder | May, Oct | 50-65% | 0.7-0.9× base |
| Low | Jun-Sep | 35-55% | 0.5-0.7× base |
Model a full 12-month cycle. Developer projections using peak season only inflate gross by 25-35%.
What Should You Know About Worked comparison: two projects side by side?
Worked comparison: two projects side by side on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
What Should You Know About Red flags in developer ROI PDFs?
What Should You Know About Red flags in developer ROI PDFs for How to Calculate ROI on Phuket Property means matching Phuket tenant demand to unit size and walk time to beach, because ADR swings 15 to 25% within one postcode. MORE Group shortlists compare three micro-locations and verify foreign buyer quota on the exact building phase before reservation.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
How do you build a five-year total-return projection?
How do you build a five-year total-return projection on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Year | Rental income (net) | Appreciation (indicative 7%) | Cumulative equity |
|---|---|---|---|
| 1 | $14,424 | $12,950 | $27,374 |
| 2 | $14,424 | $13,857 | $55,655 |
| 3 | $14,424 | $14,827 | $84,906 |
| 4 | $14,424 | $15,865 | $115,195 |
| 5 | $14,424 | $16,976 | $146,595 |
On a $185,000 Kamala condo with 7.8% net yield and 7% appreciation, five-year total return approaches $147,000 (79%) before exit taxes. Exit friction (agent 3-5%, withholding 1-3.5%, SBT if under 5 years) reduces realised proceeds, model exit in how to exit Phuket property.
What ROI mistakes do first-time Phuket investors make?
| Mistake | Impact on model |
|---|---|
| Using developer gross yield as net | Overstates return by 3-5 points |
| Ignoring furniture and fit-out | Understates cost base by $5K-$15K |
| Assuming 85%+ occupancy year-round | Overstates income 20-30% |
| Forgetting CAM and juristic fees | Understates costs 2-4% of gross |
| Comparing USD purchase to THB rent without FX | Distorts net cash flow |
Insider tip: Ask for the building’s average owner net distribution over the last 12 months, not the best-performing unit. One outlier unit with a sea-view premium skews developer marketing.
How does leverage change ROI (if you finance)?
How does leverage change ROI (if you finance) on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
Cash-on-cash return = Net annual income ÷ Cash equity deployed
A $185,000 condo with $100,000 equity and $14,424 net income delivers 14.4% cash-on-cash, higher than the 7.8% yield on full price because appreciation applies to total value while income is measured against equity only. Leverage amplifies both gains and losses; rising THB interest rates in 2025-2026 made financing less common among foreign buyers.
For appreciation context by area, see does Phuket property appreciate and capital appreciation by area.
How should you compare ROI across three shortlisted projects?
How should you compare ROI across three shortlisted projects for How to Calculate ROI on Phuket Property means matching Phuket tenant demand to unit size and walk time to beach, because ADR swings 15 to 25% within one postcode. MORE Group shortlists compare three micro-locations and verify foreign buyer quota on the exact building phase before reservation.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
Include exit costs in your five-year model even if you plan to hold longer. Agent commission of 3-5%, withholding tax of 1-3.5%, and transfer fees of approximately 2% reduce realised return by 8-10% at sale. A project showing 15% total annual return on paper may deliver 12% after exit friction, still strong, but not the brochure number. Cross-reference area appreciation data with the capital appreciation guide before adding an optimistic growth rate to your model.
Why does ROI differ between identical units in the same building?
Why does ROI differ between identical units in the same building for How to Calculate ROI on Phuket Property means matching Phuket tenant demand to unit size and walk time to beach, because ADR swings 15 to 25% within one postcode. MORE Group shortlists compare three micro-locations and verify foreign buyer quota on the exact building phase before reservation.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
What Should You Know About Summary: the ROI numbers that should drive your decision?
Summary: the ROI numbers that should drive your decision on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
What Should You Know About Quick reference: ROI formulas?
Quick reference: ROI formulas on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
MORE Group builds independent ROI models for every project we recommend using verified fee schedules and occupancy data from comparable units, not developer renderings. Request a yield worksheet before you commit to any purchase where the net yield claim has not been verified with a twelve-month operating statement from the building management company.
What Should You Know About Owner-use weeks and ROI: do not forget calendar blocks?
Owner-use weeks and ROI: do not forget calendar blocks on How to Calculate ROI on Phuket Property means foreign buyers should verify quota, payment milestones, and net rental assumptions in writing before deposit. MORE Group Phuket reservation files require documented checks on every off-plan purchase, with 49% foreign quota confirmed per unit, not per project marketing alone.
| Factor | MORE Group benchmark |
|---|---|
| Net yield | 5 to 7% after 20 to 25% operator fees |
| Peak occupancy | 75 to 85% on comparable managed units |
When comparing ROI across projects, always ask management for the worst-performing unit’s net distribution, not the best. Sustainable investment decisions are built on floor-case performance, not marketing outliers.
Want independent ROI modelling?
We use market occupancy and real fee stacks, 0% buyer commission.
How to Calculate ROI on Phuket Property at typical Phuket entry pricing entry ($80k to $200k) in Phuket means foreign buyers should underwrite gross yield at 7 to 9% and net at 5 to 7% after operator fees at 20 to 25% of gross revenue, CAM at ฿30 to ฿45 per sqm monthly, and a 15% vacancy allowance on conservative models. MORE Group tracked comparable Phuket units in 2024 to 2025: peak-season occupancy averaged 75 to 85%, low-season occupancy ran 40 to 55%, and blended ADR on 1-bedroom stock held at 1,800 to 3,200 THB per night under professional management. Before paying any reservation fee, confirm the 49% freehold quota in writing for the exact building phase, request the SPA payment schedule tied to construction milestones, and stress-test net cash flow at 40% low-season occupancy rather than brochure peak assumptions alone.
Transfer and rental planning on How to Calculate ROI on Phuket Property should budget transfer taxes at roughly 1 to 1.5% of registered value, sinking-fund contributions, and furnishing setup in year one, because net yield models that ignore these lines overstate returns by 1 to 2 points on conservative underwriting. MORE Group insider tip: building-specific rental rules, owner blackout weeks, and juristic short-stay rental policy move net yield by 1 to 2 points more often than district averages on listings suggest. Request operator statements from a sister unit in the same phase, compare resale liquidity against two completed projects within 2 km, and verify FET documentation timing four to six weeks before final transfer on freehold purchases. Foreign buyers should reject any reservation that lacks written quota confirmation for their floor, building wing, and exact foreign ownership percentage remaining in the project at reservation date.
Frequently Asked Questions
6-8% net is excellent. 5-6% is solid. Below 5% suggests overpricing or weak management. Best-in-class hotel-program condos can achieve 8-10% net with verified operations.
Management fee (15-20% of gross), CAM fee (40-100 THB/sqm/month), building insurance (~$300/year), maintenance reserve (1% of value), and realistic vacancy.
Use the area's historical appreciation as a baseline (5-8% per year indicative for prime areas) and add to net yield. Off-plan may add construction-phase gains, verify developer tier.
Total return comparisons depend on period and product. Prime Phuket property has delivered strong income-plus-growth cycles, but illiquidity and FX differ from equities.
Yes. A 5-point management fee difference can move net yield by ~0.6% on typical condos, professional management often pays back via occupancy.
Always net after fees and CAM. Gross is only a first filter, brochures usually show optimistic gross.
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