Profession Calculators
Real Estate & Property Investing

Rental Yield Calculator

Calculate gross and net rental yield on investment properties.

Maintenance, management, insurance, vacancy, etc.

Your Results

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Enter property details and click calculate.

What This Calculator Does

This calculator computes gross and net rental yield for investment properties. It helps landlords and investors understand the annual return from rental income relative to the property value.

The Formula

Gross Yield = (Annual Rent / Property Value) x 100 | Net Yield = ((Annual Rent - Expenses) / Property Value) x 100

Gross yield uses total rental income without deductions. Net yield subtracts annual operating expenses (maintenance, insurance, management fees, vacancy allowance) for a more realistic return figure.

Step-by-Step Example

1

Enter property value

The purchase price or current market value. Example: $250,000.

2

Enter monthly rent

The monthly rental income. Example: $1,800/month = $21,600/year.

3

Enter annual expenses

Operating costs like maintenance, insurance, property management. Example: $5,400/year.

4

Review yields

Gross yield = 8.6%. Net yield = 6.5%.

Real-World Use Cases

Investment Screening

Quickly screen potential rental properties by yield to find those worth deeper analysis.

Portfolio Monitoring

Track rental yields across your property portfolio to identify underperformers.

Market Comparison

Compare rental yields in different neighborhoods or cities to decide where to invest.

Common Mistakes to Avoid

  • Using gross yield alone to make decisions. Net yield gives a much more realistic picture.

  • Forgetting vacancy allowance. Even good properties may have 5-10% vacancy per year.

  • Not including property management fees (typically 8-12% of rent) if using a manager.

Frequently Asked Questions

Accuracy and Disclaimer

Rental yield calculations are estimates. Actual returns depend on market conditions, vacancy rates, maintenance costs, and other variable factors. Consult a real estate professional.