Rental Yield Calculator

The return your rental property actually makes.

How to use this calculator

Enter the property price, monthly rent and monthly expenses, then press Calculate. Gross yield, net yield and annual cash flow are shown.

Worked example

A $250,000 property renting for $1,800 a month has a gross yield of $21,600 / $250,000 = 8.6%. If expenses run $600 a month, net income is $1,200 a month or $14,400 a year - a net yield of 5.8%. That gap between 8.6% and 5.8% is why you must compare properties on net yield.

What the result means

Gross yield is a quick screen; net yield is the real number. The annual cash flow line tells you how much the property puts in your pocket each year before mortgage payments and income tax.

Expenses people forget

• Property tax and landlord insurance.
• Management fees (often 8-10% of rent).
• Maintenance and vacancy - budget 10-15% of rent combined.

Frequently asked questions

What's a good rental yield?

Net yields of 4-8% before financing are common targets. In high-price coastal cities expect less; in lower-price markets expect more.

Does this include mortgage payments?

No - it assumes a cash purchase. If you finance, subtract your mortgage payment from the annual cash flow to see your true return on the cash you invested.

Yield alone does not tell you whether a property appreciates, and markets where rents are high relative to prices tend to be markets where prices are already priced in. Combine the yield with realistic long-term appreciation and your own holding period before committing.