Direct answer
How this metric is calculated
Gross yield = annual rent ÷ purchase price × 100. Net yield = net operating income ÷ purchase price × 100.
Rental yield analysis
Estimate gross and net rental yield from purchase price, rent, vacancy and annual operating costs.
Annual operating costs
Net rental yield
6.17%
Net operating income divided by purchase price after the costs entered above.
Gross yield
10.00%
NOI / year
$18,520
Monthly cash flow
$1,543
Cash invested
$300,000
Planning estimate only. Tax treatment, financing, future rent, vacancies and operating expenses vary by property and market.
Use it correctly
Compare like-for-like properties
Keep vacancy, management and operating-cost assumptions consistent when comparing properties. A higher headline return can disappear when service charges, maintenance or vacancy are ignored.
Frequently asked questions
Rental Yield Calculator FAQs
What is rental yield?
Rental yield expresses rental income as a percentage of the property purchase price. Gross yield uses scheduled rent; net yield subtracts the operating costs and vacancy assumptions entered in the calculator.
What is a good rental yield?
There is no universal good yield. A useful target depends on location, property type, financing, vacancy risk, maintenance and expected capital growth. Compare like-for-like properties in the same market.
Does rental yield include mortgage payments?
Gross and net property yield are normally evaluated before financing. Mortgage costs affect investor cash flow and cash-on-cash return, so use the investment or cash-on-cash calculator for financed returns.