Rental Yield Calculator
Gross and net rental yield from monthly rent and running costs.
Your numbers
Net rental yield
5.85%
Gross rental yield 8.71%
- Gross annual rent$27,000.00
- Vacancy loss−$1,350.00
- Effective rental income$25,650.00
- Net operating income$18,150.00
- Gross yield
- 8.71%
- Net yield
- 5.85%
- Gross rent
- $27,000
- NOI
- $18,150
Operating expenses are taxes, insurance, maintenance, management and HOA — not mortgage payments. Pair this with a cash-on-cash calculation once financing is known.
Frequently asked questions
What is gross rental yield?+
Annual rent divided by the property's value or price. It is a quick screen that ignores vacancy and running costs, so it always overstates what you will actually keep.
What is net rental yield?+
Annual rent after vacancy and operating expenses - net operating income - divided by the property value. It is the more realistic figure for comparing properties.
What counts as operating expenses?+
Property tax, insurance, maintenance, management and HOA dues. Mortgage payments are not an operating expense here; pair the result with a cash-on-cash calculation once financing is known.
Gross versus net yield
- Gross yield
- Annual rent over price. Quick to compute, but it ignores every cost of owning the property.
- Vacancy
- No property is let every day. A vacancy allowance turns scheduled rent into rent you can expect to collect.
- Net yield
- Income after vacancy and running costs over price - the fairer number for comparing two properties.