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Rental Yield Calculator

Calculate gross and net rental yield, cap rate and cash-on-cash return for property investments.

Net yield
3.98%
Gross: 8.00%
Net yield (cap rate)
3.98%
Gross: 8.00%
Annual rent
$24,000.00
Effective rent
$21,660.00
Annual expenses
$9,732.80
Net operating income
$11,927.20
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How to use the Rental Yield Calculator

  1. 1

    Enter your inputs

    Fill in the required fields at the top of the rental yield calculator. Each input shows a default placeholder so you can see the expected format and units before you type.

  2. 2

    Adjust assumptions and options

    Use the toggles, sliders and dropdowns to tailor the calculation to your situation — currency, country, time period, advanced options and any optional fields all change the result in real time.

  3. 3

    Review the result

    The result card updates instantly as you type. Read the headline number, then check the breakdown, chart and any per-period schedule to understand how the inputs combined to produce the answer.

  4. 4

    Compare scenarios

    Change one input at a time to see how sensitive the result is to that variable. This is how you build intuition: small changes that move the answer a lot are the levers that matter.

  5. 5

    Share or save your result

    Copy the shareable link to send the exact scenario to someone else, or use your browser to print or save the page. The URL preserves every input so the recipient sees the same answer you do.

Frequently Asked Questions

  • Gross yields of 5-8% are typical in most markets; net yields of 4-6% after expenses indicate a solid investment. High-yield markets (some midwest US, parts of UK Midlands) can offer 8-12%.
  • Gross yield = Annual Rent ÷ Property Value. Net yield deducts running costs (maintenance, insurance, agent fees, voids). Net yield is the more meaningful number.
  • Cap rate (capitalization rate) = Net Operating Income ÷ Property Value. It's essentially net yield expressed for commercial-style analysis and is the standard metric for comparing investment properties.
  • For mortgaged properties: annual cash flow ÷ total cash invested (down payment + closing costs + initial repairs). It measures the return on actual money you've put in.
  • Property taxes, insurance, maintenance (rule of thumb: 1-2% of value annually), management fees (8-10% of rent if using a manager), vacancy allowance (5-10% of rent), HOA, utilities (if landlord-paid).
  • Plan for 5-10% vacancy — roughly 1 month vacant per year is a sensible budget for typical residential rentals.
  • Use realistic collected rent. Multiply gross rent by (1 ? vacancy %) and subtract collection losses. Many investors are too optimistic on this number.
  • No — yield measures cash income only. Total return = yield + capital appreciation, but appreciation is speculative. Yield is the conservative measure.
  • Mortgages amplify returns when property appreciates and rent covers payments — but also amplify losses. Cash-on-cash return rises with leverage; risk rises proportionally.
  • A property "passes" the 1% rule if monthly rent equals at least 1% of purchase price ($200K property ? $2,000/mo rent). It's a quick screening filter; few properties meet it in expensive markets.