Rental Yield Calculator
Calculate gross and net rental yield for investment properties
Calculator
Annual Expenses
Annual Income Breakdown
Rental Yield Guide
How to Use
Calculate gross and net rental yield for investment properties
Enter property value
Input the current market value or purchase price
Add monthly rent
Enter the monthly rental income
Input annual expenses
Add property tax, insurance, maintenance, management fees
Set vacancy rate
Estimate expected vacancy percentage (typically 5-10%)
View yields
See both gross and net rental yield percentages
Rental Yield Formulas
Gross Yield = (Annual Rent / Property Value) x 100 Net Yield = ((Annual Rent - Expenses) / Property Value) x 100
Gross yield shows potential return before costs; net yield reflects actual income after expenses.
Frequently Asked Questions
Gross yields of 5-8% are generally considered good, while 8%+ is excellent. Net yields (after expenses) of 4-6% are solid. City center properties often have 3-5% yields but better appreciation. Regional properties may offer 7-10% yields but less growth potential.
Gross yield = (Annual Rent / Property Value) x 100. Net yield = ((Annual Rent - Annual Expenses) / Property Value) x 100. Net yield is more meaningful as it accounts for property tax, insurance, maintenance, vacancy, and management costs.
Increase rent to market rates, reduce vacancy through better tenant screening and retention, minimize expenses through preventive maintenance, consider value-add improvements, refinance at lower rates, or buy properties in higher-yield areas. Focus on net yield, not just gross.
Rental yield measures your property's income return independent of appreciation. High yield means better cash flow and quicker payback of your investment. It helps compare properties across different markets and price points, and determines if a property can sustain itself financially.