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Real Estate
Rental Yield
Gross rental yield
Runs locally in your browser
Parameters
Results
- Gross yield
- 7.54%
- Net yield
- 6.4%
- Income/yr.
- $26,400
How it works
Calculates gross and net rental yield on an investment property as a percentage of purchase price.
Who it's for: Landlords, house hackers, and investors screening single-family rentals, duplexes, and small multifamily properties.
Gross yield = (monthly rent × 12 ÷ property price) × 100%.
Net yield subtracts annual operating expenses from rental income before dividing by price.
Reports annual gross rental income in dollars for quick sanity checks.
How to use
- Enter Property price — purchase price or current market value used as the investment basis.
- Set Rent/mo. to expected or actual monthly rent (excluding security deposits).
- Enter Expenses/yr. for landlord-paid costs: property taxes, insurance, maintenance, property management, and vacancy reserve.
- Read Gross yield for the pre-expense return on price.
- Compare Net yield to bonds, REITs, and other income investments after expenses.
Good to know
- A gross yield of 8–10% is strong in many US markets; net yield of 4–6% after expenses is more typical.
- Budget one month of rent per year for vacancy and turnover in your Expenses/yr.
- Yield on full price understates returns when using leverage — pair with the rental cash flow calculator for financed deals.
FAQ
- What expenses should I include?
- Include property tax, landlord insurance, maintenance (1% of value per year is a rule of thumb), HOA if applicable, property management (8–10% of rent), and a vacancy allowance.