Rental Yield Calculator
Compute gross and net rental yield, annual income, and cap rate from purchase price, rent, and operating expenses.
Gross vs net rental yield
Rental yield compares annual rent to property value. Gross yield uses total rent before expenses. Net yield subtracts operating costs such as taxes, insurance, maintenance, management, and vacancy so you can judge cash flow more realistically.
Related property analysis tools
Model full deals with the Rental Property Calculator, compare cap rates in the Capitalization Rate Calculator, or weigh renting against buying with the Rent vs Buy Calculator.
Frequently Asked Questions
What is a good rental yield?
Many investors target roughly 5% to 8% gross yield, with 4% to 6% net after expenses, though markets vary widely.
How is cap rate shown here?
Cap rate is net operating income divided by purchase price, expressed as a percentage, using the expenses you enter.
Should vacancy be in months or percent?
This calculator uses vacant months per year, which is multiplied by monthly rent to estimate lost income.
Does this include mortgage payments?
No. Yield here is based on property value and operating income, not financing. Use a mortgage calculator for debt service.