Rental Income Calculator
Gross income · Net income · GRM · Effective yield
Industry avg: 5–8%
Tax, insurance, maintenance
Skip if self-managed
For yield & GRM calc
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Gross / Month
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Effective Income
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Net / Month
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Annual NOI
About This Calculator
The Rental Income Calculator gives landlords and investors a clear picture of what a property actually earns after accounting for vacancy, expenses, and management fees.
Gross Rental Income is total rent collected assuming 100% occupancy. Effective Gross Income adjusts for vacancy. Net Operating Income (NOI) is what remains after all operating expenses — this is the number that drives property valuation.
The Gross Rent Multiplier (GRM) = Property Value ÷ Annual Gross Rent. A GRM under 10 is generally excellent; 10–14 is fair; above 14 may indicate the property is overpriced for its income. Use GRM for quick screening — cap rate for deeper analysis.
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Frequently Asked Questions
What is the difference between gross and net rental income?▼
Gross rental income is total rent collected before any deductions. Net rental income (NOI) is what remains after vacancy losses, operating expenses (taxes, insurance, maintenance), and management fees — but before mortgage payments. NOI is the true measure of a property's earning power.
What expenses should I deduct from rental income?▼
Operating expenses include: property taxes, landlord insurance, property management fees (8–10%), maintenance and repairs (budget 1% of property value/year), vacancy allowance (5–8%), utilities if paid by landlord, and HOA fees. Do NOT deduct mortgage principal — that's capital repayment, not an expense.
What is a good net rental yield?▼
Net rental yield of 6–8% is considered strong in most markets. Primary cities (NYC, LA, SF) often yield 3–5% net due to high property values. Secondary and tertiary markets can yield 8–12%+ net. Always compare yields within the same market type.
What is GRM (Gross Rent Multiplier) in real estate?▼
GRM = Property Price ÷ Annual Gross Rent. Example: $400,000 property with $2,500/mo rent = $400,000 ÷ $30,000 = 13.3 GRM. Lower GRM = better value. GRM is a quick screening tool — it ignores expenses, so always follow up with NOI and cap rate analysis.
How does vacancy rate affect rental income?▼
A 5% vacancy rate means losing 18 days of rent per year. On a $2,000/month rental, that's $1,200/year in lost income. Budget realistically — even great properties have occasional vacancies due to tenant turnover, renovations, or market conditions.
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