EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Rental Yield Calculator

Calculate the gross and net rental yield on a property. Gross yield screens deals; net yield tells you what you actually earn on capital after vacancy and expenses.

$
$
$

Tax, insurance, management, maintenance — exclude mortgage.

%
$

Gross rental yield

9.76%

annual rent ÷ purchase price

Net rental yield

6.59%

NOI ÷ total invested

Cap rate

6.74%

NOI ÷ purchase price

Net operating income

$19,872

after vacancy and OpEx

Reading the yield

Gross yield is a fast comparison metric, but net yield is the one that feeds a real decision. Compare your net yield to a risk-free yield (T-bills), then add expected appreciation to judge the deal's total return potential.

How to Use

  1. Enter the purchase price and expected monthly rent.
  2. Enter annual operating expenses (tax, insurance, management, maintenance) and exclude the mortgage.
  3. Add a vacancy rate — 5–8% is typical for stabilized rentals.
  4. Include closing costs so the net yield reflects actual capital committed to the deal.
  5. Compare gross yield across properties for a fast screen, and use net yield for the decision.

Frequently Asked Questions

What's the difference between rental yield and cap rate?

Gross rental yield uses annual rent and property price. Cap rate uses NOI and property price. Net rental yield uses NOI and total capital invested (price plus closing costs). All three are cousin metrics with different uses.

What's a good rental yield?

Gross yields of 7–10% are common in cash-flow markets. Net yields of 4–6% are typical after expenses. High-appreciation markets often have lower net yields (2–4%) but compensate with price growth.

Does rental yield consider financing?

No — yield is intentionally unleveraged. To see leverage, use the cash-on-cash return calculator, which divides cash flow by cash invested after a mortgage.

Is rental yield the same everywhere in the world?

The formulas are identical, but what counts as 'good' varies by country. Markets with mortgage rates of 2% can sustain much lower rental yields than markets with mortgage rates of 8%.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →