Rental Yield Calculator
Get a property's gross and net yield — and the rent it would take to reach a yield you're targeting. Net yield is the one that counts, because it subtracts vacancy and expenses.
Gross & net yield
What rent hits your target yield?
The gross rent needed to reach a yield you set, at this price.
From gross to net (annual)
Gross yield uses rent alone; net yield subtracts vacancy and operating costs, so it's the more honest comparison between properties.
Gross yield flatters, net yield tells the truth
Gross yield is the headline number agents love to quote — rent divided by price — but it says nothing about the costs of actually running the property. A 10% gross yield can collapse to a 5% net yield once vacancy, management, maintenance, and reserves come out.
Net yield divides net operating income by your all-in cost, so it's the figure to compare across properties. Pair it with cap rate and, for the return on your actual cash, the full analysis.
Frequently asked questions
What is rental yield?
Rental yield expresses a property's annual rent as a percentage of its price or value — a quick measure of how hard your money works. Gross yield uses rent alone (annual rent ÷ price); net yield subtracts vacancy and operating costs, so it reflects what you actually keep.
What's the difference between gross and net yield?
Gross yield is rent ÷ price and ignores costs — it's easy to compute but flattering. Net yield divides net operating income (rent after vacancy and operating expenses) by your total acquisition cost, so it's the more honest number for comparing properties. A high gross yield with heavy expenses can hide a mediocre net yield.
What is a good rental yield?
It varies widely by market. Many investors look for a gross yield of 7–10% or a net yield around 5%+, but lower-yield properties in strong appreciation markets can still be good investments. Compare a property's yield to similar rentals nearby rather than to a universal target.
How is rental yield different from cap rate?
They're close cousins. Net rental yield and cap rate both divide net income by a value — the main difference is convention: cap rate typically uses purchase price or market value, while 'net yield' often uses total acquisition cost including closing and initial costs. Both ignore financing, which makes them good for comparing properties.
Does yield account for my mortgage?
No — yield is unleveraged, like cap rate. It measures the property's return independent of how you finance it. To see the effect of a loan on your actual cash return, use cash-on-cash return in the full analysis.