Rental Yield Calculator
Assess property returns — gross and net yield on a rental investment.
How to use this tool
- Enter property value and purchase costs.
- Enter annual rent and annual expenses.
- Calculate gross and net yield.
- Optionally add mortgage payment to see cash-flow-after-financing.
How it works
Gross = rent/value. Net = (rent - expenses)/value. Cash flow = rent - expenses - annual mortgage payments.
Tips
- Include vacancy periods (5% of rent) in expenses for honesty.
- Maintenance budget of 1% of value annually is common.
- Yields are city-specific — compare within your market.
Limitations
Borrowing interest rates and appreciation aren't modeled as returns; it's a yield snapshot.
Frequently asked questions
What is gross yield?
Annual rent / property value x 100. A quick market scan metric, before costs.
What is net yield?
After subtracting running costs (property tax, insurance, maintenance, fees) from rent: net = (rent - costs)/value.
Which do investors care about?
Net yield, opinionated by financing costs. This calculator shows both plus annual cash income.