Real Estate
Rental Yield Calculator
Calculate the gross and net rental yield on any investment property to evaluate cash flow potential.
Net Rental Yield
β
How It Works
Gross Yield = (Annual Rent / Purchase Price) Γ 100. Net Yield = ((Annual Rent β Annual Expenses) / Purchase Price) Γ 100. Expenses include property management, insurance, maintenance, and vacancy losses.
Example
Property $300,000, rent $2,000/month ($24,000/year), expenses $6,000/year β Net yield = ($24,000 β $6,000) / $300,000 Γ 100 = 6%.
Frequently Asked Questions
What is a good rental yield?
A net yield of 5β8% is generally considered good in most US markets. High-yield markets may offer 8β12%. Below 4% may not cash flow after mortgage costs.
What expenses should I include?
Property management (8β12% of rent), insurance, property taxes, maintenance (1% of value/year), vacancy (5β10% of rent), and HOA fees if applicable.
What is cap rate vs. rental yield?
Cap rate uses net operating income (without mortgage costs) divided by property value. Rental yield is similar but often includes mortgage costs when calculating net cash flow.