🏢 Real Estate
Rental Yield Calculator
Calculate gross rental yield, net rental yield, and payback period for any investment property.
🏠 Property & Rental Income
💸 Annual Operating Expenses
📊 Rental Yield Results
Gross Yield
Net Yield
Payback Period
💵 Annual Cash Flow
📅 Annual Rent
📋 Income & Expense Breakdown
Gross Annual Rent
− Vacancy Loss
− Property Tax
− Insurance
− Maintenance Reserve
− Management Fees
− Other Costs
= Total Annual Expenses
= Net Annual Income
📌 5 Rental Yield Tips
- ✓ Gross yield is a screening tool, not a decision tool. Two properties with the same 10% gross yield can have very different net yields depending on tax rates, insurance costs, and age of the building.
- ✓ Net yield is what actually matters. A property with 12% gross yield but 4% net yield is barely profitable. Always calculate both before comparing deals.
- ✓ Benchmark against local averages. Gross yields of 5-7% are typical in high-value coastal markets; 8-12% in mid-sized cities; 12%+ signals higher risk or distressed areas.
- ✓ Don't forget vacancy and turnover. A 5% vacancy assumption is the minimum. In student rentals or seasonal markets, 10-15% is realistic. Every vacant month directly reduces your net yield.
- ✓ Payback period = 100 ÷ yield %. A 10% net yield means ~10 years of net rent to recover the purchase price. This ignores appreciation and financing — use it as a quick comparison, not a full analysis.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or investment advice. Actual returns depend on many factors not captured here (appreciation, tax benefits, repairs, market changes, financing costs). Always perform thorough due diligence and consult licensed professionals before investing.
Related Real Estate Investment Tools
Rental yield is the starting point for evaluating a rental property. Pair it with cap rate, cash-on-cash return, and mortgage analysis to see the full picture before you make an offer.
- Cap Rate Calculator: Calculate the capitalization rate for any rental property — the unlevered yield that serious investors use to compare deals across markets.
- Cash-on-Cash Return Calculator: Measure the annual cash return on your actual invested capital — the metric that tells you what your yield looks like in your pocket after financing.
- Rental Property Calculator: Project monthly cash flow, NOI, and 10-year returns for any rental property — the full deal analysis beyond just yield.
- Mortgage Calculator: Estimate monthly principal and interest for the loan on the property — the financing cost that turns gross yield into real cash flow.
- Mortgage Affordability Calculator: Find the maximum purchase price your income and down payment can support.
- Down Payment Calculator: Figure out how much cash you need upfront — the down payment that determines your leverage and cash-on-cash return.
- Payback Period Calculator: See how many years of income it takes to recover your investment — the time horizon that yield alone only hints at.
- ROI Calculator: Calculate the total return on investment including appreciation and equity build-up — the full-picture metric beyond annual yield.
📚 Resources for Property Investors
The 5 Tips above cover the math, but the best investors pair yield analysis with deal-finding, due-diligence, and financing playbooks.
🏠 Rental Property Investment for Beginners
How to evaluate deals past the yield headline — cash flow, appreciation, and the 1% rule.
📊 Real Estate Market Analysis Guide
Compare yields across markets, spot emerging neighborhoods, and avoid overpaying in hot markets.
🏢 Cap Rate Calculator
Calculate the capitalization rate — the unlevered yield metric that serious investors use to compare deals.
💰 Cash-on-Cash Return Calculator
Measure the annual cash return on your invested capital — what your yield looks like after financing.