Rental Yield Calculator
Calculate gross and net rental yield for any investment property.
Include property tax, insurance, maintenance, management fees
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.
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.
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