Rental Yield Calculator
Calculate the rental yield return on investment property
About this calculator
The Rental Yield Calculator helps property investors determine the annual return on their investment property as a percentage. This essential tool calculates both gross and net rental yields by comparing annual rental income to property value and expenses. Understanding rental yield is crucial for evaluating investment opportunities, comparing properties, and making informed decisions about property purchases. It provides a clear picture of your investment's profitability and helps identify whether a property meets your financial goals and investment strategy.
How to use
Enter your property's purchase price or current market value, then input the expected annual rental income. For net yield calculations, also include annual expenses like maintenance, insurance, and property management fees. The calculator will instantly display your gross and net rental yield percentages, helping you assess the investment's profitability.
Frequently asked questions
What's the difference between gross and net rental yield?
Gross yield uses total rental income without expenses, while net yield deducts property costs like maintenance, insurance, and management fees for accurate profitability.
What's considered a good rental yield?
Generally, 6-8% gross yield is considered good, but this varies by location, property type, and market conditions. Compare with local averages.
Should I use purchase price or current market value?
Use purchase price to calculate your actual return on investment, or current market value to assess current performance and opportunity cost.