What is gross rental yield?

Gross rental yield is the annual rent divided by the property value, expressed as a percentage. It gives a quick snapshot of return before any costs are deducted.

What is net rental yield?

Net rental yield deducts all annual expenses (maintenance, insurance, management fees, and vacancy losses) from the annual rent before dividing by the property value. It reflects the actual return you pocket.

What is considered a good rental yield?

It depends on the market, but a gross yield of 5–8% is generally considered healthy in most Western markets. Net yields of 3–5% are typical after expenses. High-growth areas often show lower yields because capital appreciation compensates.

Should I use purchase price or current value?

Use purchase price to measure the return on your original investment. Use current market value to see how the yield looks to a new buyer today. Both perspectives are useful depending on your decision.

What vacancy rate should I use?

A 5% vacancy rate (roughly 2–3 weeks empty per year) is a common conservative assumption for stable markets. In high-demand areas, 2–3% may be realistic; in slower markets, 8–10% is safer.

Does this calculator account for mortgage costs?

No — it focuses on property-level yield before financing. Add your annual mortgage interest to the expenses field if you want a leveraged net yield.

Rental Yield Calculator

Name: Rental Yield Calculator
Availability: InStock
Author: Nham Vu

Enter your property value and annual rent to instantly calculate gross and net rental yield, plus monthly cash flow after expenses.

Property Details

Property Value ($)

Monthly Rent ($)

Annual Expenses (optional)

Maintenance & Repairs ($/yr)

Insurance ($/yr)

Management Fee (% of rent)

Vacancy Rate (%)

Enter property details to see your rental yield.

Summary

Enter your property value and annual rent to instantly calculate gross and net rental yield, plus monthly cash flow after expenses.

How it works

Enter the property value (purchase price or current market value).
Enter the monthly or annual rental income you expect to receive.
Optionally add annual costs: maintenance, insurance, management fee percentage, and vacancy rate.
The calculator instantly shows gross yield (rent ÷ property value) and net yield (rent minus expenses ÷ property value).
Review the annual and monthly cash-flow breakdown to assess profitability.

Use cases

Compare rental yields across multiple investment properties before buying.
Estimate the impact of management fees and vacancy on net returns.
Determine whether a property meets your minimum yield threshold.
Model different rent levels to find the break-even point.
Present yield calculations to a mortgage lender or co-investor.
Stress-test returns by adjusting the vacancy rate.

Frequently Asked Questions

Last updated: 2026-06-11 · Reviewed by Nham Vu