What's the difference between gross and net yield?

Gross yield is rent divided by property value, expressed as a percentage — a simple comparison metric. Net yield subtracts the actual cost of running the property (taxes, insurance, maintenance, management, vacancy) before dividing, so it reflects what you really earn. Net is always lower than gross, sometimes dramatically so, and it's the figure that should drive real decisions.

Which expenses should I include?

The big ones are property taxes, insurance, ongoing maintenance (a useful rule of thumb is one percent of property value per year), property management fees if you don't self-manage (typically eight to ten percent of rent), and a vacancy assumption of five to ten percent. HOA fees and any landlord-paid utilities go on the list too. Leaving any of these out makes the yield look better than it really is.

Should I use leverage?

It's a trade-off. A mortgage lets you control more property with less capital, which amplifies both returns and risks. Monthly cash flow shrinks because of the debt service, but cash-on-cash return on your actual down payment can be much higher than yield on the full purchase price. A cash purchase removes that volatility but ties up far more of your capital. Look at both cash-on-cash and total return before deciding.

How does cash flow differ from yield?

Yield is a percentage based on the property value; cash flow is the actual dollars hitting your account each month. A property can have a perfectly respectable yield and still produce negative cash flow once the mortgage payment is included. Both metrics matter — yield tells you whether the property is fundamentally productive, cash flow tells you whether you can sleep at night while owning it.

What about appreciation?

Rental yield only captures income; it doesn't include the property's value going up over time. Total return is rental income plus appreciation, and the balance varies by market. Some areas have low yields but strong appreciation, others have high yields but flat values. The right strategy depends on which type of return you're optimizing for.

How does this compare to investing in stocks?

Long-term returns are surprisingly similar — real estate has historically delivered around 7 to 10 percent including rent and appreciation, and the S&P 500 sits in roughly the same range. The differences are in the details. Real estate offers leverage, tax benefits, and a tangible asset, while stocks offer better liquidity, easier diversification, and almost zero management overhead. Most balanced portfolios make room for both.

Is the data sent anywhere?

No. The whole calculation is straightforward JavaScript running in your browser, so your purchase prices, rents, and expense numbers never leave the page. That makes it safe to use for due diligence on real properties without worrying about anything being logged or shared.

Rental Yield Calculator

Calculate gross and net rental yield on investment properties. Factor in expenses, vacancy, and management fees. Free rental ROI calculator.

Calculators

Instant results

Property Value / Purchase Price

Monthly Rent

Annual Expenses

Maintenance & Repairs (annual)

Insurance (annual)

Property Tax (annual)

Property Management Fee (%)

Vacancy Rate (%)

Other Annual Expenses

Closing / Purchase Costs (one-time)

Includes legal fees, inspection, stamp duty, etc. Used for cap rate calculation.

About Rental Yield Calculator

Calculate the financial performance of a rental property investment with key metrics:

Gross Yield: Annual rent divided by property value, before expenses
Net Yield: Annual rent minus expenses, divided by property value
Cap Rate: Net Operating Income divided by total investment (including purchase costs)
Cash Flow: Actual money remaining after all expenses are paid

This calculator does not include mortgage payments. For leveraged investments, your actual return on equity may differ significantly. All calculations happen in your browser.

How to Use Rental Yield Calculator

Enter the property basics

Start with the purchase price (or current market value if you already own it) and the rent — either monthly or annual works.

Add the recurring expenses

Fill in property tax, insurance, expected maintenance, any management fees you'll pay, and a realistic vacancy percentage. Don't be optimistic here; the more accurate the inputs, the more useful the output.

Optionally include the mortgage

If you're financing the purchase, add the loan amount, interest rate, and term. The calculator factors the monthly payment into cash flow so you can see what actually lands in your account each month.

Read the results

The output covers gross yield, net yield, and monthly cash flow. Compare across properties or against your other investment options to decide whether the deal makes sense.

When to Use Rental Yield Calculator

Sizing up a rental property

Before putting an offer in, you want to know what the numbers actually look like. Gross yield is simply annual rent divided by purchase price, but the calculator goes further by factoring in property tax, maintenance, vacancy, and management fees so the net yield reflects what you'll really clear. Real estate investors, first-time landlords, and financial planners use it to separate listings that pencil out from the ones that only look attractive on the surface.

Comparing properties side by side

When you're choosing between two or three candidate properties, gut feel isn't enough. Run each through the calculator with realistic expense assumptions and the differences become obvious — sometimes the cheaper property has worse net yield once you account for higher maintenance or weaker rental demand.

Putting real estate in context

How does a rental property compare to leaving the money in stocks or bonds? Calculating yield in the same percentage terms makes the comparison concrete. Real estate has leverage and tax advantages that pure yield doesn't capture, but starting with an apples-to-apples number is still a useful first step in any portfolio decision.

Catching negative cash flow before you buy

A property can have a respectable yield on paper and still lose money every month once the mortgage is in the picture. The calculator surfaces monthly cash flow after expenses and debt service, which is exactly the metric most likely to make or break the investment. Negative cash flow is sometimes acceptable when you're banking on appreciation, but you want to see it before you sign.

Rental Yield Calculator Examples

Gross yield on a $500K property

Input

Property $500,000, monthly rent $2,500

Output

Annual rent $30,000. Gross yield 6%.

Gross yield is the simplest comparison metric — annual rent divided by purchase price. Six percent is reasonable for residential, but it ignores every actual cost of ownership.

Net yield once expenses are real

Input

Same property plus $5,000 of annual expenses (taxes, insurance, maintenance)

Output

Net rent $25,000. Net yield 5%.

Subtracting realistic ownership costs brings the yield down to 5%, which is much closer to your actual return. Net yield is what investors compare when they're being honest with themselves.

Cash flow with a mortgage

Input

Same $500,000 property, $400,000 mortgage at 6%, $30,000 rent, $5,000 expenses

Output

Mortgage payments around $28,800/yr. Net cash flow about -$3,800/yr (negative).

Even at a respectable yield, the mortgage tips this property into negative cash flow — you'd be paying out of pocket every month. That can still be a reasonable bet if appreciation is strong, but it's a very different proposition than the gross yield made it look.

Tips & Best Practices for Rental Yield Calculator

1.Gross yield is a screening tool, not a final verdict. Five to ten percent is typical for residential, but the figure alone says nothing about expenses, debt service, or what you actually take home.
2.A useful rough rule for ownership costs is roughly one percent of property value per year for maintenance, plus property tax, insurance, and management fees on top. Plug realistic numbers in rather than assuming the property runs itself.
3.Vacancy is real. Plan for five to ten percent of the year sitting empty between tenants and during turnovers. Calculations that assume 100% occupancy are flattering and misleading.
4.Cash flow matters as much as yield. A high-yield property with negative monthly cash flow means you're funding the investment from your day job, which is only sustainable if the appreciation thesis pans out.
5.Cap rate is a closely related concept — net operating income divided by property value — and it's the metric commercial investors lean on. Slightly more precise than gross yield since NOI already excludes operating expenses.
6.Compare against the alternatives. Stocks have returned around seven percent historically, bonds three to five, savings less. Real estate adds leverage and tax benefits but reduces liquidity, so the numbers alone don't capture the full trade-off.

Frequently Asked Questions

For residential investments, 5 to 10 percent gross is typical. Commercial properties tend to run higher, around 7 to 12 percent. Anything below five usually means the math is hard to make work after expenses, while anything above ten often signals a higher-risk market or a property that needs significant capital work to bring up to standard. Always compare to what you'd earn on alternative investments before drawing conclusions.

Rental Yield Calculator

Annual Expenses

About Rental Yield Calculator

How to Use Rental Yield Calculator

Enter the property basics

Add the recurring expenses

Optionally include the mortgage

Read the results

When to Use Rental Yield Calculator

Sizing up a rental property

Comparing properties side by side

Putting real estate in context

Catching negative cash flow before you buy

Rental Yield Calculator Examples

Gross yield on a $500K property

Net yield once expenses are real

Cash flow with a mortgage

Tips & Best Practices for Rental Yield Calculator

Frequently Asked Questions

Related Tools

Temperature Converter

Length Converter

Weight Converter

Area Converter

Volume Converter

Data Size Converter