EachCalculatorRental Yield Calculator
Calculate the gross and net rental yield for an investment property — how much annual income it generates relative to its price.
Gross Rental Yield
6%
Net Rental Yield
4.67%
How It Works
Gross yield
Gross yield = annual rental income ÷ property price × 100 — a quick, simple measure that ignores ongoing expenses.
Net yield
Net yield subtracts annual expenses (maintenance, insurance, property management, etc.) from rental income first, giving a more realistic picture of actual return.
Example Calculation
A $300,000 property renting for $2,000/month ($24,000/year) with $6,000 in annual expenses has an 8% gross yield but only a 6% net yield.
Common Mistakes
- Comparing properties using gross yield alone — two properties with the same gross yield can have very different net yields depending on expenses.
- Forgetting to include all recurring costs (property management fees, maintenance reserves, insurance, vacancy periods) in the net yield calculation.
Frequently Asked Questions
- What's a good rental yield?
- It varies widely by market and property type, but many investors look for gross yields in the 5-10% range, with net yield being the more important number for actual profitability.
- Does this account for mortgage payments?
- No — this measures the property's income yield independent of financing. Mortgage payments affect your actual cash flow but not the property's underlying yield.