Rental Yield Calculator
Gross yield · Net yield · Market benchmark
Tax, insurance, maintenance, mgmt
Stamp duty, legal, inspection
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Gross Yield
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Net Yield
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Annual NOI
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Rating
About This Calculator
The Rental Yield Calculator measures how much annual income a property generates relative to its cost — the essential metric for comparing investment properties.
Gross Rental Yield = Annual Rent ÷ Property Price × 100. Simple and quick — use it for initial screening. Net Rental Yield = Annual NOI ÷ Total Investment × 100. More accurate — accounts for vacancy, expenses, and purchase costs.
Always use net yield for serious investment decisions. Gross yield can be misleading because two properties with identical gross yield may have very different net yields depending on their expense ratios. A property with 8% gross yield and 50% expense ratio delivers only 4% net.
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Frequently Asked Questions
What is a good rental yield for investment property?▼
Target net yields depend on your market: Primary cities (NYC, LA, SF): 3–5% net is typical. Secondary markets (Austin, Denver, Atlanta): 5–7% net. Regional/rural markets: 7–10%+ net. Higher yield generally means higher risk or less desirable location. Balance yield with growth potential.
What is the difference between gross and net rental yield?▼
Gross yield ignores all expenses — it's rent divided by price. Net yield deducts vacancy, operating expenses, management fees, and purchase costs from the numerator and adds purchase costs to the denominator. Net yield is always lower but far more meaningful for investment decisions.
How do I increase my rental yield?▼
Increase rent to market rate, reduce vacancy through better tenant retention, cut unnecessary expenses, self-manage instead of using a property manager, add income streams (parking, storage, laundry), or buy properties below market value to lower your cost base.
Is rental yield or capital growth more important?▼
Depends on your strategy. Cash flow investors prioritize yield (passive income now). Wealth-building investors prioritize capital growth (buy in appreciating markets, accept lower yield). Most experts recommend balancing both — minimum 5% net yield in markets with solid 3–5% annual appreciation.
How does rental yield compare to other investments?▼
Current context: 10-year treasury bonds yield ~4–5%. S&P 500 historical total return: ~10%/year. Real estate offers net yields of 4–8% PLUS appreciation, leverage benefits, and tax advantages (depreciation). The combination often outperforms pure yield comparisons.
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