Property Rental Yield Calculator

Property Rental Yield Calculator

Property Information

$
$

Annual Expenses

$
$
$
$
%
$

Results

Enter values to calculate

Your results will appear here

Gross Rental Yield
--
Before expenses
Net Rental Yield
--
After all expenses
Monthly Cash Flow
--
Net monthly income
Annual Expenses
--
Total yearly costs

Income vs Expenses Breakdown

Visual breakdown of your rental property's income allocation

What is Rental Yield?

Rental yield is a key metric for property investors that measures the annual return on a rental property as a percentage of its value. It helps you compare different investment opportunities and assess whether a property will generate positive cash flow.

How to Calculate Rental Yield

1

Enter Property Value

Input the purchase price or current market value of your investment property.

2

Add Rental Income

Enter your expected or actual annual rental income from the property.

3

Include Expenses

Add maintenance, taxes, insurance, and other costs for accurate net yield.

Rental Yield Benchmarks

Understanding what constitutes a good rental yield helps you evaluate investment opportunities:

< 4%
Below Average
May indicate overpriced property or low rent
4–6%
Average
Typical for stable, established markets
6–8%
Good
Strong cash flow potential
8%+
Excellent
High yield—assess risk factors

Rental Yield Formulas

Gross Rental Yield Formula

Gross Yield = (Annual Rent ÷ Property Value) × 100
Example: A $250,000 property renting for $2,000/month:
($24,000 ÷ $250,000) × 100 = 9.6% gross yield

Net Rental Yield Formula

Net Yield = ((Annual Rent - Expenses) ÷ Property Value) × 100
Example: Same property with $6,000/year expenses:
(($24,000 - $6,000) ÷ $250,000) × 100 = 7.2% net yield