Rental Yield Calculator
Evaluate real estate investment returns with gross rental yield and net rental yield after expenses.
Understanding the Rental Yield Calculator
Real estate investors searching classifieds and property portals use rental yield metrics to compare prospective rental properties across different zip codes and property types.
How to Use This Tool
Enter the property purchase price, anticipated monthly rental revenue, and annual recurring operating expenses (property tax, insurance, HOA, maintenance reserve).
Calculation Methodology & Formula
The underlying calculation applies the following deterministic mathematical logic:
Annual Gross Rent = Monthly Rent × 12. Gross Yield (%) = (Annual Gross Rent / Purchase Price) × 100. Annual Net Income = Annual Gross Rent - Annual Expenses. Net Yield (%) = (Annual Net Income / Purchase Price) × 100.
Practical Classifieds Example
Real-World Scenario: A $250,000 apartment renting for $1,600/month with $4,200 annual expenses produces a 7.68% Gross Yield and a 6.00% Net Yield.
Important Limitations & Assumptions
Rental Yield Calculator FAQs
A gross rental yield between 6% and 9% is generally considered attractive in most metropolitan and suburban residential markets.
Gross yield ignores high HOA fees, property taxes, and structural maintenance that can turn a seemingly profitable rental into a cash drain.
To factor in vacancy, deduct 1 month of rent (8.3%) from your annual revenue calculations as an operating buffer.
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