Rental Yield Calculator

Rental yield is the annual rent from a property expressed as a percentage of its value. Gross yield uses the full rent, while net yield subtracts running costs first, so it reflects the income you actually keep before financing and tax.

Divide the annual rent by the property value and multiply by 100. A property worth 250,000 that rents for 20,000 a year has a gross yield of 8 percent. The calculator does this the moment you type.

Subtract yearly expenses from the annual rent, divide by the property value, then multiply by 100. On a 250,000 property renting for 20,000 with 5,000 of costs, the net yield is 6 percent. Net yield is always at or below gross yield.

When you switch to the Monthly rent tab, the figure you enter is multiplied by twelve to get the annual rent used in the formula. A monthly rent of 1,800 becomes 21,600 a year, so both bases produce the same yield for equivalent rents.

Include recurring running costs such as property tax, insurance, maintenance, management fees, service charges and an allowance for vacant periods. Mortgage interest and income tax are usually left out of yield so the figure stays comparable across properties.

Yes. If your yearly expenses are larger than the annual rent, the net yield drops below zero, which tells you the property loses money before financing. The gross yield always stays positive as long as the rent is above zero.

It depends on the market, but many investors look for a gross yield of 5 to 8 percent. A high yield means more income per unit of value, though it can also signal a cheaper area, higher vacancy risk or slower capital growth.

No. Yield only compares rent to price. It ignores mortgage payments, price appreciation and tax. For a leveraged view use a cash-on-cash return, and for total profit combine yield with expected capital growth.

No. The calculation runs entirely in your browser and nothing you type is uploaded or stored, so your figures stay private on your device.