Rental Yield Calculator
See what a rental property actually earns as a percentage of its price — before and after the yearly running costs.
How it works
Gross yield is the simple version: take a full year of rent and divide it by what you paid for the place. Collect $1,500 a month on a $300,000 home and that's $18,000 a year, or a 6% gross yield. It's the number listing sites love to quote because it flatters the property.
Net yield is the honest one. Subtract the money the property eats every year — insurance, taxes, repairs, management, the odd vacant month — before you divide. That $18,000 might drop to $15,000 after $3,000 of costs, pulling the yield down to 5%.
Use gross yield to compare listings quickly, then lean on net yield when you're deciding whether a deal is actually worth doing. Two properties can share the same gross yield and end up miles apart once the running costs are in the picture.
Frequently asked questions
What's a good rental yield?
It depends on the market, but many investors look for a gross yield of at least 5–8%. Cheaper areas often post higher yields, while expensive cities lean on price growth instead. Always check the net figure before deciding.
What counts as an annual cost?
Anything you pay to keep the property running and rented: property taxes, insurance, maintenance and repairs, letting or management fees, and an allowance for months it sits empty. Leave out the mortgage — that's covered by cash-on-cash return instead.
Why is my net yield so much lower than gross?
Because gross ignores every expense. Once you factor in taxes, upkeep, and vacancies, a chunk of the rent never reaches your pocket. A big gap between the two usually means the property is expensive to run relative to the rent it pulls in.