Rental Yield Calculator
How much does a rental property earn compared with its price?
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Rental Yield Calculator by TheCalcTools
How the Rental Yield Calculator works
Enter the purchase price, monthly rent, expected vacancy and yearly running costs.
Gross yield is annual rent divided by price.
Net yield subtracts vacancy and costs, but not mortgage payments.
The formula
Worked example
Using the default values shown in the calculator:
| Property price | $300000 |
|---|---|
| Monthly rent | $1800 |
| Vacancy (% of the year) | 5 % |
| Annual costs (tax, insurance, repairs, management) | $7000 |
- Annual rent = $1,800 × 12 = $21,600. Gross yield = 7.20%.
- After 5% vacancy and $7,000 of costs, NOI = $13,520.
- Net yield = 4.51%.
Result:
| Gross rental yield | 7.20% |
|---|---|
| Net operating income per year | $13,520 |
| Net rental yield | 4.51% |
| Gross rent multiplier | 13.9 |
Frequently asked questions
What is a good rental yield?
It varies by market and risk. Many investors look for a net yield above their mortgage rate and above what safer investments pay.
Does yield include mortgage costs?
No. Net yield is before financing, so it compares properties independent of how you pay for them.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.