Calculate gross and net rental yield on any investment property.
Return on your investment property
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Always double-check important financial decisions with a qualified professional. This calculator provides estimates for guidance purposes. Results may vary based on your specific circumstances.
Rental yield tells you how much income a property generates relative to its value — a critical number for comparing investment properties, but one that's frequently calculated incorrectly by only looking at gross rent without subtracting expenses.
Gross yield above 7-8% is generally considered strong in most markets, though this varies significantly by location — expensive coastal cities often see yields of 3-5% (with appreciation making up the difference), while more affordable inland markets can see yields of 8-12%.
Net yield — after property tax, insurance, maintenance, vacancy, and management fees — is the number that actually matters for cash flow. A property advertised with an attractive 8% gross yield might net only 4-5% once realistic expenses are factored in.
Use the calculator above to compare gross and net yield on any property you're evaluating. Always model realistic vacancy rates (5-10% annually) and maintenance costs — overly optimistic assumptions are the most common reason rental property investments underperform expectations.