categories.real-estate
Rental Yield Calculator
Calculate gross and net rental yield, cash flow, and ROI for property investments
FAQs
What is a good rental yield?
A gross rental yield of 5-8% is generally considered good, though this varies by location and property type.
What is the difference between gross and net yield?
Gross yield uses total rent income, while net yield subtracts expenses like maintenance, insurance, and vacancy costs.
How to Use the Rental Yield Calculator
Measure the annual return a rental property generates relative to its price.
- Enter the property price (or current value).
- Enter the monthly rent.
- Enter annual expenses for net yield.
- See gross and net rental yield.
Rental Yield Formulas
Gross Yield
Income before costs as a percentage of price.
Example:
Input: $1,500/mo on a $300,000 home
Calculation: (18,000 / 300,000) × 100
Result: 6.0%
Net Yield
After maintenance, tax, insurance, and management fees.
Example:
Input: $18,000 rent − $4,000 costs on $300k
Calculation: (14,000 / 300,000) × 100
Result: 4.67%
Real-World Use Cases
Property Comparison
Rank investment properties by return.
Rent Setting
Find the rent needed to hit a target yield.
Tips & Common Mistakes
Tips
- Net yield is more realistic than gross — always include costs.
- Compare yield against mortgage rates and other investments.
Common Mistakes to Avoid
- Ignoring vacancy periods and maintenance.
- Using purchase price forever instead of current value.