Rental Yield Calculator
Calculate gross and net rental yield on an investment property, from purchase price, rent and running costs.
Gross rental yield
—
Net rental yield —
Annual rent —
✉ Email me this result
</> Embed this calculator
Paste this into any website or blog post. It is free — the small "powered by" link must stay visible.
How it works
Gross yield = annual rent ÷ purchase price × 100; net yield = (annual rent − annual costs) ÷ purchase price × 100Frequently Asked Questions
How do I calculate rental yield?
Gross yield divides annual rent by purchase price: a property bought for $300,000 renting at $1,800/month ($21,600/year) has a 7.2% gross yield. Net yield subtracts running costs (maintenance, insurance, management fees, vacancy) first, giving a more realistic figure.
What is a good rental yield?
It varies enormously by market: 4–6% gross is common in expensive, high-growth cities; 7–10%+ is more typical in cheaper regional markets that offer less capital-growth potential. Compare within the same local market rather than against a universal benchmark.
Why does net yield matter more than gross yield?
Gross yield ignores real costs that can consume 20–40% of rental income — property management, maintenance, insurance, vacancy periods, and rates. Two properties with identical gross yields can have very different net returns depending on these costs.