CompoundInterestCalc
Free online tool · Real estate

Rental Yield Calculator

Use this free rental yield calculator to see how hard a property works for you. Enter the purchase price and the rent, and instantly get the gross yield — plus the net yield once vacancy and running costs are stripped out.

See exactly where each year's rent goes, and how the yield shifts if you pay more or less for the same property. The fastest way to compare rentals on a like-for-like basis. No account, no sign-up, no spreadsheet.

The property
$
$ /mo
%
▶ Costs & purchase fees
$
$
$
%
$
%
Gross rental yield
0%
Net yield
0%
Net income /yr
$0
Gross rent /yr
$0
Where the annual rent goes

Yield if you paid a different price
Purchase price Gross yield Net yield Net income

Estimates are for illustration and education only — not investment advice. Actual yields depend on local rents, costs, taxes and occupancy.

The math

Gross vs net rental yield

Rental yield is the annual rent expressed as a percentage of what the property costs. Gross yield uses the full rent; net yield subtracts vacancy and running costs first — it's the number that tells you what you actually keep.

Gross yield = Annual rent ⁄ Purchase price × 100
A quick, comparable headline number — useful for screening properties fast.
Net yield = Rent − vacancy − costs ⁄ Price + purchase fees × 100
Costs = property tax + insurance + maintenance + management + other. This is your real operating return.
Worked example. A $300,000 home renting for $2,100/mo brings in $25,200 a year — a gross yield of 8.4%. Take off 5% vacancy and about $8,000 of tax, insurance, maintenance and management, and roughly $15,900 is left. Against a total outlay of $309,000 that's a net yield of about 5.1%.
See it in action

Rental yield across market types

Three properties at different price points. Load any one into the calculator and adjust from there.

Quick guide

How to use the rental yield calculator

Four short steps. Change any field and the yields, breakdown and table update instantly.

Step 1

Enter the purchase price

What the property costs to buy. Add purchase fees under costs for the true figure your net yield is measured against.

Step 2

Enter the rent

Toggle between monthly and annual. This alone gives you the gross yield instantly.

Step 3

Set vacancy and costs

Allow for empty weeks and add tax, insurance, maintenance and management to reveal the net yield.

Step 4

Compare on price

The table shows how the same rent produces very different yields depending on what you pay — your negotiating leverage in one view.

Good to understand

What rental yield tells you

Rental yield is the single most useful number for comparing income properties. Because it's a percentage of the price, it lets you line up a cheap house against an expensive apartment and see which one actually earns more relative to its cost — something the raw rent figure can never tell you.

Gross yield is for screening

Gross yield — annual rent divided by price — is fast and comparable, which makes it perfect for a first pass across many listings. But it ignores every cost of ownership, so a high gross yield can still hide a property that barely breaks even once the bills land.

Net yield is the honest number

Net yield subtracts vacancy, property tax, insurance, maintenance and management before dividing by your total outlay including purchase fees. It's usually two to four points below the gross figure, and it's the number that reflects what lands in your account.

Why the purchase price matters most

Rent is set by the market, but the price you pay is negotiable — and it's the denominator in both yield formulas. The comparison table makes this vivid: the same rent can swing your net yield by more than a full point depending on whether you pay over or under asking. Buying well is the biggest lever you control.

Who it's for

Anyone buying or comparing rental property — first-time landlords sizing up a purchase, or investors screening a shortlist. You only need the price and the rent to start; add costs for the full picture.

Want financing, cash flow and long-term returns too? Try the rental property ROI calculator, or browse all our free tools.

Quick answers

Rental yield calculator FAQ

Is this rental yield calculator free?
Yes — it's completely free, runs entirely in your browser, and requires no account or sign-up. Your numbers are never sent to us or stored on a server.
What's the difference between gross and net yield?
Gross yield is annual rent divided by the purchase price — a quick headline figure. Net yield first subtracts vacancy and all operating costs, then divides by your total outlay including purchase fees. Net yield is lower but far more realistic.
What's a good rental yield?
It varies by market, but as a rough guide a gross yield above about 8% is strong, 5–8% is healthy, and below 3% is low and usually relies on price appreciation rather than income. Always compare net yield to a savings or bond rate to judge whether the risk is worth it.
Does yield account for the mortgage?
No — yield measures the property's return independent of how you finance it, so you can compare properties fairly. To factor in a loan, cash flow and appreciation, use the rental property ROI calculator instead.
Is this financial advice?
No. This is an educational tool showing illustrative estimates. Real yields depend on local rents, costs, taxes and occupancy. Always do your own due diligence and consult a professional before buying.