Real Estate

Rental Yield Calculator (Gross vs Net)

Calculate Gross Rental Yield and Net Rental Yield percentages to benchmark property investment cash flow against local real estate market averages.

What this calculator does

The Rental Yield Calculator (Gross vs Net) estimates your result instantly from the values you enter, using standard real estate formulas. Calculate Gross Rental Yield and Net Rental Yield percentages to benchmark property investment cash flow against local real estate market averages. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

Rental Yield Calculator (Gross vs Net) Financial Analysis

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Gross Rental Yield (%)

  • Net Rental Yield (%) 0.00%
  • Gross Annual Rent $0.00
  • Annual Net Rental Income $0.00
  • Monthly Gross Rent $0.00
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Gross Rental Yield
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Net Rental Yield
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Net Yield on Invested Capital

What This Means

About Rental Yield Calculator (Gross vs Net)

The Rental Yield Calculator calculates Gross Rental Yield and Net Rental Yield, measuring annual rental income generated relative to the property's total purchase cost.

Formula & Mathematical Calculation

Gross Rental Yield (%) = ( Annual Gross Rent / Total Property Purchase Price ) × 100

Net Rental Yield (%) = [ ( Annual Gross Rent - Annual Operating Expenses ) / Total Property Purchase Price ] × 100

Calculation Example

$280,000 Property ($2,200/mo Rent = $26,400/yr Gross Rent, $6,400/yr Operating Expenses): Gross Rental Yield = 9.43% | Net Rental Yield = 7.14%.

Key Benefits

  • Calculates both Gross Yield and Net Yield percentages
  • Accounts for property taxes, insurance, HOA fees, and maintenance costs
  • Standard metric for global and domestic real estate benchmarking
  • Allows fast screening of potential rental acquisitions
  • 100% free real estate tool

How to Use this Calculator

  1. Enter Property Purchase Price
    Input acquisition cost.
  2. Enter Monthly / Annual Rental Income
    Input scheduled gross rent.
  3. Enter Annual Operating Expenses (Optional)
    Input property management, taxes, and repairs.
  4. Calculate Rental Yield
    Click Calculate to view Gross and Net Rental Yield percentages.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • Rental Yield Calculator (Gross vs Net) produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

A gross rental yield between 6% and 9%+ is generally considered good for residential real estate investments, depending on the appreciation potential of the market.

You supply the purchase price, the capital invested, the gross annual rental income, the annual operating expenses, and the annual debt. The yield-related percentages are computed from those entries.

It divides net operating income — gross annual income minus annual operating expenses — by the purchase price and shows it as a percentage, which is the cap rate that expresses the property's income yield against its price. It also reports cash-on-cash return against the capital invested.

The purchase price and the gross annual income both need to exceed zero. When either is zero the tool stops and shows 'Please enter valid revenue and purchase details.'

The income-yield percentage here is based on net operating income, so it already subtracts the annual operating expenses you enter from the gross income before dividing by the purchase price.

Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.