How it works
How this tool works.
Rental yield turns a year of rent into a percentage of what the property costs, so you can compare a cheap property with modest rent against a pricier one with higher rent on the same footing. Gross yield uses the rent alone; net yield subtracts the operating expenses to show what the property actually returns.
Enter the price, the monthly rent, and your annual operating expenses, and this calculator estimates both yields at once. It’s arithmetic on the figures you provide — a comparison tool, not a valuation or a prediction of returns.
Enter the property price or value and the monthly rent; the tool annualizes the rent (monthly × 12).
Gross yield: annual rent ÷ price × 100 — the headline figure that ignores expenses.
Net yield: (annual rent − annual operating expenses) ÷ price × 100 — a truer basis for comparing properties.
Both figures are estimates from your inputs; the calculator guards against dividing by a zero price.
Make the result useful
Rental-yield interpretation
Purchase price is the value denominator for the scenario.
Annual rent should be stated as gross scheduled or effective income so the yield label is clear.
Operating expenses determine whether the result is gross or net yield.
Financing is separate; yield is not the same as levered cash return.
The assumptions that move this result
Price
Acquisition or value denominator.
Rent
Annualized rent on a stated basis.
Expenses
Recurring operating costs for net yield.
Income basis
Whether vacancy and concessions are included.
gross yield = annual rent ÷ price; net yield = net operating income ÷ price
Use the output as a documented scenario result, not a guarantee.
Read the number in context
Worked scenario
Scenario: $30,000 annual rent on $300,000 price is 10% gross yield.
Edge case
Edge case: a low price can raise yield while hiding major repairs.
Does not include debt service, tax effects, or future rent changes.
Before you act
• Label gross versus net yield.
• Rebuild expenses from records.
• Compare cash flow after financing separately.
Worked formula
gross yield = annual rent ÷ price; net yield = net operating income ÷ price
Is this a forecast?
No. It calculates the assumptions you enter.
Can it replace professional review?
No. Use current records and qualified advice.
What should I save?
Keep the assumptions and source records used for the decision.