Rental Yield Calculator
Calculate gross and net rental yield for any investment property.
Include property tax, insurance, maintenance, management fees
Enter your property price and rent to see results
How Rental Yield is Calculated
Gross Rental Yield
Example: A property costing $400,000 with $2,000/month rent: ($24,000 / $400,000) × 100 = 6.00% gross yield.
Net Rental Yield
Example: Same property with $5,000/year expenses: ($24,000 − $5,000) / $400,000 × 100 = 4.75% net yield.
What is Rental Yield?
Rental yield measures the annual return on a property investment based on the rent it generates relative to its purchase price. It's the most common metric property investors use to quickly compare opportunities across different markets and price points.
Gross yield is the simplest measure — total annual rent divided by purchase price. It's useful for fast comparisons but doesn't account for the costs of ownership.
Net yield subtracts operating expenses (property tax, insurance, maintenance, vacancy, management fees) before dividing by price. This gives a more realistic picture of actual cash return, typically 1.5–3 percentage points lower than gross yield.
A rental yield of 5–8% is generally considered solid for residential investment properties in most markets. Yields above 8% often indicate higher-risk areas or properties requiring significant management. Yields below 4% may suggest the property is overpriced for its rental potential, though capital growth expectations can justify lower yields in premium locations.
What this calculator doesn't include
This is a quick-estimate tool. For a complete investment analysis including country-specific stamp duty, closing costs, capital gains tax, mortgage amortization, and multi-year projections — use our full ROI calculator.
Include Country-Specific Costs & Projections
Add stamp duty, closing costs, capital gains tax, and 10-year projections tailored to your country.
Frequently Asked Questions
What is a good rental yield? ▼
A good rental yield depends on the market and property type, but generally: 5–8% gross yield is solid for residential property. Yields above 8% are strong but may indicate higher risk or more intensive management. Below 4% is considered low, though capital growth expectations can compensate in premium locations.
How do you calculate rental yield? ▼
Gross rental yield = (Monthly rent × 12) / Purchase price × 100. For net yield, subtract annual expenses (property tax, insurance, maintenance, management fees) from the annual rent before dividing by the purchase price. For example: $2,000/month rent on a $400,000 property = 6% gross yield.
What is the difference between gross and net rental yield? ▼
Gross yield uses total rental income divided by purchase price — quick but ignores costs. Net yield subtracts annual operating expenses first (property tax, insurance, maintenance, management fees, vacancy allowance). Net yield is typically 1.5–3% lower than gross yield and gives a more realistic picture of actual return.
Rental yield vs cap rate — what's the difference? ▼
Both measure return, but cap rate uses net operating income (rent minus all operating expenses) divided by the current market value of the property — not the purchase price. This makes cap rate more useful for comparing properties regardless of when they were purchased. Rental yield is better for evaluating a potential purchase.