Rental Yield Calculator
Calculate gross and net rental yield on an investment property.
Compare returns across different properties.
Rental Yield
Rental yield measures the annual return on a rental property as a percentage of its purchase price.
Gross Rental Yield:
Gross Yield = (Annual Rental Income / Property Price) × 100
Net Rental Yield accounts for expenses like insurance, maintenance, management fees, and vacancy:
Net Yield = ((Annual Rental Income − Annual Expenses) / Property Price) × 100
What’s a good rental yield?
- Below 4% — Low yield, may not cover costs
- 4% – 6% — Average yield for most markets
- 6% – 8% — Good yield
- Above 8% — Excellent yield (verify the risk)
Example: Property bought for $300,000, rented at $2,000/month:
- Annual rent = $2,000 × 12 = $24,000
- Gross yield = ($24,000 / $300,000) × 100 = 8.0%