Rental Yield Calculator
Calculate the gross and net rental yield on an investment property to evaluate whether it's a strong return.
Gross yield vs. net yield
Gross yield is a quick, simple comparison metric — annual rent divided by property price — useful for quickly screening properties, but it ignores all ongoing costs. Net yield subtracts annual expenses (property management, maintenance, insurance, property tax, vacancy allowance) before dividing by price, giving a more realistic picture of actual return.
Two properties with identical gross yields can have very different net yields depending on their expense profile — an older property may need more maintenance, while a newer one might carry higher property tax, both of which erode the gross number differently.
What counts as an expense in this calculation
A thorough net yield calculation should include property management fees (if using a manager), routine maintenance and repairs, property insurance, property tax, HOA fees if applicable, and a reasonable allowance for vacancy periods between tenants — leaving any of these out will overstate your actual return.
This calculator doesn't account for financing costs (mortgage interest) if the property is leveraged — for a fuller picture of cash-on-cash return on a financed property, mortgage payments would need to be factored in separately.
Frequently asked questions
What's considered a good rental yield?
This varies significantly by market and property type, but gross yields in the 5-8% range are commonly cited as solid in many markets, while some higher-risk or lower-cost markets can show higher yields — always compare within your specific local market rather than against a universal benchmark.
Should I use gross or net yield to compare properties?
Net yield gives a more accurate picture since it accounts for actual holding costs, though gross yield is useful as a quick first-pass screening tool before digging into expense details.