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.
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
-
Enter Property Purchase Price
Input acquisition cost. -
Enter Monthly / Annual Rental Income
Input scheduled gross rent. -
Enter Annual Operating Expenses (Optional)
Input property management, taxes, and repairs. -
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
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