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Rental Yield Calculator
Rental yield is a year’s rent as a percentage of what the property cost. Enter the purchase price and monthly rent for the gross yield, then add running costs and buying costs for the net yield — the figure that tells you what the property really earns.
- Net rental yield
- 5.7%
- Annual rent
- $21,600.00
- Annual income after costs
- $17,100.00
Saved setups
Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.
Your recent calculations
Results you calculate here are kept on this device so you can come back to them.
Formula
How to use it
- Enter the purchase price or current value.
- Enter the monthly rent.
- Enter yearly running costs, including an allowance for empty periods.
- Enter one-off buying costs to include them in the net yield.
Worked examples
A $300,000 property rented at $1,800 a month with $4,500 of yearly costs
- Annual rent
- $21,600.00
- Gross rental yield
- 7.2%
- Annual income after costs
- $17,100.00
- Net rental yield
- 5.7%
A £250,000 flat rented at £1,100 a month, with £2,400 of yearly costs and £10,000 of buying costs
- Annual rent
- $13,200.00
- Gross rental yield
- 5.28%
- Annual income after costs
- $10,800.00
- Net rental yield
- 4.15%
Gross versus net
Gross yield is quick to work out and is what property listings usually quote, but it ignores every cost. Net yield subtracts insurance, repairs, letting or management fees, property taxes, service charges and time without a tenant, and counts the fees and taxes you paid to buy.
The gap is often large. A $300,000 property renting for $1,800 a month has a 7.2% gross yield; with $4,500 of yearly costs the net yield is 5.7%.
What yield leaves out
Neither figure includes mortgage interest or income tax on the rent, and neither counts any rise or fall in the property’s value. A low-yield property in an area with rising prices can out-earn a high-yield one elsewhere, and the reverse.
Net yield before financing is essentially the same measure as the cap rate used in US commercial property. Treat the result as an estimate for comparing properties, not as investment advice.
Questions people ask
How do you calculate rental yield?
Multiply the monthly rent by 12, divide by the purchase price and multiply by 100. $1,500 a month on a $250,000 property is a 7.2% gross yield.
What is a good rental yield?
Many landlords look for a gross yield of 5–8%. Expensive city markets often yield less and rely on price growth; cheaper areas tend to yield more.
What is the difference between rental yield and ROI?
Yield compares rent with the property’s full price. ROI compares your profit with the cash you invested, so it changes with the size of your mortgage and includes interest costs.