Calculate your investment property return
Rental Yield Calculator
Calculate the gross and net rental yield on any investment property. Enter the property value, monthly rent, and expenses to see your real return on investment.
Enter your details
≈ $487/week · $25,344/year
Rates, insurance, maintenance, property management
% of year property sits vacant
Used for cash-on-cash return (leave 0 to skip)
Gross rental yield
5.63%
Before expenses & vacancy
Net rental yield
4.13%
After expenses, before tax
Annual rent income
$25,344
After vacancy
Annual expenses
$6,750
Net annual income
$18,594
How does your yield compare?
Rent breakdown
Per week
$487
Per month
$2,112
Per year
$25,344
How this calculator works
Rental yield measures the annual return on an investment property as a percentage of its value. It's the primary metric investors use to compare properties and assess whether a deal makes financial sense.
Gross yield is calculated simply: (Annual Rent / Property Value) × 100. It ignores expenses and is useful for quick comparisons. A typical US residential property yields 4–8% gross, though this varies significantly by market. High-yield markets (Detroit, Cleveland, Memphis) can achieve 8–12%+ gross yields, while expensive coastal cities (San Francisco, NYC) may yield just 2–4%.
Net yield subtracts all ownership costs from the rental income before dividing by property value. These costs include property management (typically 8–12% of rent), maintenance, insurance, property taxes, vacancy allowance, and any HOA fees. Net yield is a more accurate picture of actual returns.
A simple rule of thumb: if a property can generate 1% of its purchase price in monthly rent (the "1% rule"), it may be worth deeper analysis as an investment. A $300,000 property renting for $3,000/month = 1% rule satisfied.
Worked example
- 1Annual gross rent: $2,200 × 12 = $26,400
- 2Effective rent (5% vacancy): $26,400 × 0.95 = $25,080
- 3Gross yield: $25,080 / $400,000 × 100 = 6.27%
- 4Net income: $25,080 - $8,000 = $17,080
- 5Net yield: $17,080 / $400,000 × 100 = 4.27%
Frequently Asked Questions
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Try calculatorDisclaimer: Calculations are estimates for informational purposes only and do not constitute financial advice. Rates, taxes, and costs vary by state and lender. Consult a licensed mortgage professional before making financial decisions.