Rental Yield Calculator
Calculate gross and net rental yield for any property. Quick check on whether a rental purchase makes financial sense.
What is Rental Yield Calculator?
The rental yield calculator measures rental income as a percentage of property value. Higher yield means more income per dollar invested, but typically signals lower-cost markets and more management work.
Formula
Gross rental yield = (annual rent / property value) × 100
Net rental yield = ((annual rent − expenses) / property value) × 100
Worked example
$350,000 property, $2,200/month rent, $8,000 annual expenses:
- Annual rent: $26,400
- Gross yield: 7.54%
- Net yield: 5.26%
How to use this calculator
- Enter the property price and monthly rent.
- Add annual operating expenses (taxes, insurance, maintenance, vacancy).
Frequently asked questions
Gross or net — which matters more?
Gross for quick filtering across listings. Net for buy/no-buy decisions because it includes the real costs.
What's a "good" rental yield?
5-8% gross is typical for U.S. suburban. 8%+ tends to be Class B/C or smaller markets. Under 5% means you're paying for appreciation potential, not income.
Cap rate vs rental yield — same thing?
Closely related. Cap rate uses NOI (after operating expenses); rental yield often uses gross or simpler net. Cap rate is the more rigorous metric for serious investors.
Should I include my mortgage?
No — rental yield is property-level. Add the mortgage to compute cash-on-cash return separately.