Rental Yield Calculator
Calculate gross and net rental yields
Last updated: January 2025
About This Tool
The rental yield calculator helps property investors quickly assess the income potential of rental properties by calculating both gross and net rental yields. These metrics are essential for comparing investment opportunities and understanding property performance.
What is Rental Yield Calculator?
Rental yield is the annual rental income from a property expressed as a percentage of its value. Gross yield uses total rental income, while net yield subtracts operating expenses. These metrics help investors compare properties and assess income-generating potential.
How It Works
Enter the property price, monthly rent, annual expenses, and vacancy rate. The calculator computes gross yield (annual rent divided by property price) and net yield (annual rent minus expenses divided by property price). Both are expressed as percentages for easy comparison.
Formula
Gross Yield = (Monthly Rent x 12 / Property Price) x 100; Net Yield = ((Annual Rent - Expenses) / Property Price) x 100
Gross Yield
8.00%
Net Yield
6.27%
Income Summary
Benchmarks
💡 Price-to-Rent
Your ratio: 12.5. Below 15 favors buying, above 20 favors renting.
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When to Use This Calculator
- 1When comparing multiple investment properties
- 2To quickly assess if a property is worth further analysis
- 3When setting rental rates for a property
- 4To evaluate different markets for investment potential
- 5During initial property screening before detailed analysis
Pro Tips
Common Mistakes to Avoid
- •Using gross yield alone without considering expenses
- •Forgetting to account for vacancy periods
- •Comparing yields across different markets without adjustment
- •Not updating calculations when expenses change
- •Overlooking management costs in expense calculations