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Rental Yield Calculator
Compute gross and net rental yield from price, rent, and expenses — and see how the yield moves as rent changes.
Property
Rent & expenses
Gross rental yield9.4%Annual rent ÷ purchase price
Net yield6.7%
Annual rent$26,400
Monthly rent$2,200
How to use this calculator
Enter the purchase price and your purchase costs, then the monthly rent and annual operating expenses. The calculator returns both gross and net rental yield, your net annual income, and a table showing how yield shifts across a range of rents.
What the metrics mean
- Gross rental yield — annual rent divided by purchase price.
- Net rental yield — net annual income divided by total invested (price plus purchase costs).
- Net annual income — annual rent minus operating expenses, before the mortgage.
- Purchase costs — closing and acquisition costs added to the basis for net yield.
Frequently asked questions
- How do you calculate rental yield?
- Gross rental yield = annual rent ÷ purchase price. Net rental yield = (annual rent − operating expenses) ÷ (purchase price + purchase costs). Both are expressed as a percent.
- What is a good rental yield?
- It varies by market. Many investors look for gross yields of 6–10%; high-appreciation metros often run lower, while cash-flow markets run higher. Net yield is always lower than gross.
- What is the difference between gross and net yield?
- Gross yield uses rent and price only. Net yield subtracts operating expenses and includes purchase costs in the basis, so it is a more realistic measure of the return on what you actually spent.
- Does rental yield include the mortgage?
- No. Rental yield is calculated before financing, similar to cap rate. To see your levered return, use the cash-on-cash return calculator instead.
Comparing yields across markets? dre1mery.com computes gross and net yield on every lead automatically.