Rental Yield Calculator
Work out gross and net rental yield from a property price and rent, adjust for vacancy, or reverse the calculation to find the rent needed for a target yield.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Gross rental yield
Enter a property price greater than zero.
What a rental yield calculator does
Rental yield expresses a property's income as a percentage of its price, turning two numbers everyone already has — the price and the rent — into a single figure you can compare across streets, cities and even countries. A rental yield calculator computes both the headline gross yield and the more honest net yield, adjusts for the rent you actually collect after vacancy, and can work backwards to tell you what rent a property must achieve to hit the return you need. It is usually the first calculation a buy-to-let investor runs and the quickest way to reject a deal that cannot pay its way.
Gross yield, net yield and the vacancy adjustment
- Gross yield = annual rent ÷ property price × 100
- Net yield = (annual rent − annual operating expenses) ÷ property price × 100
- Adjusted rent applies your vacancy rate so the yield reflects real collections, not a fully-let ideal
Gross yield is fine for a first sort, but net yield is the number that predicts your experience. Costs — property tax, insurance, management, maintenance, service charges and periodic voids — are where superficially similar properties diverge, and a property advertised on a tempting gross yield can deliver a mediocre net one.
Worked example
A flat is priced at $300,000 and rents for $1,750 a month, or $21,000 a year. Its gross yield is $21,000 ÷ $300,000 = 7.0%. Now subtract $6,000 of annual running costs and allow for a few weeks of vacancy: net collectible income might be about $14,500, a net yield near 4.8%. The 2.2-point gap between the two is the real cost of owning that flat — and precisely what a headline gross figure hides.
Yield vs growth
High yield and high capital growth rarely come together. Prime, high-demand areas tend to offer lower yields but stronger appreciation, while cheaper areas offer higher yields with slower growth and often more management. Neither is automatically better; the right balance depends on whether you are investing for monthly income or long-term wealth. Yield measures only the income half of that trade-off.
Where yield fits in your analysis
Yield ignores financing and appreciation, so treat it as a screen rather than a verdict. Pair it with the cap rate calculator for a standardised expenses-based view, the cash-on-cash return calculator to bring in your mortgage, the rental property ROI calculator for cash flow plus appreciation, and the GRM calculator for an even faster price-to-rent screen.
Frequently asked questions
What is rental yield?
Rental yield is annual rent expressed as a percentage of the property price. Gross yield uses rent alone; net yield subtracts running costs. It is a quick way to compare income potential across properties.
What is a good rental yield?
It varies widely by location. Many investors look for a gross yield of 5–8%, but high-growth areas often have lower yields and higher appreciation. Compare against comparable local properties rather than a single benchmark.
What is the difference between gross and net yield?
Gross yield is annual rent ÷ price. Net yield subtracts annual operating expenses (tax, insurance, maintenance, management) before dividing, so it better reflects the income you actually keep.
How do I find the rent needed for a target yield?
Switch the calculator to reverse mode and enter the price and your target yield. It returns the annual and monthly rent required to hit that yield — useful for deciding whether a property can realistically command the rent your strategy needs.
Should rental yield use the purchase price or current value?
Both are valid but answer different questions. Yield on your purchase price shows the return on what you actually paid; yield on current market value shows what a new buyer would earn today. When comparing listings, use each property's asking price so the comparison is like-for-like.
Why is net yield sometimes far lower than gross?
Because operating costs vary enormously between properties. A newer flat with low maintenance and no service charge keeps most of its gross yield, while an older house with high repairs, management fees, insurance and vacancy can lose a third or more of it. The gap between gross and net yield is often the most revealing number on the page.
Does rental yield account for my mortgage?
No. Yield is a property-level metric based on price, not on how you financed it. To bring your loan into the picture, use cash-on-cash return, which measures cash flow against the cash you actually invested after financing.
Related calculators
Cap Rate
Compute capitalization rate from NOI and value, or solve for value or NOI.
GRM
Compute the gross rent multiplier, or solve for price or rent.
Rental Property ROI
Estimate cash flow, cash-on-cash and total ROI for a financed rental, including sale.
Property Cash Flow
Estimate monthly and annual rental cash flow after expenses and mortgage.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Results are estimates for comparison only and do not account for financing, taxes on income, or local market conditions.