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Rental Yield Calculator

Work out gross and net rental yield on any property.

Best for: Use it to compare rental properties, judge whether rent justifies the price, or set a target rent.

Complete guide
Currency / Country:

Input

Result

Estimate

Gross rental yield

4.80%

Net rental yield
4.20%
Standard formula Private — runs in your browser, no account

What to do next

Next: SSI Payment Calculator
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More about this result
Result quality
Type
Industry Standard
Method
Industry-standard method
Confidence
High

Uses the standard formula and conventions the industry relies on.

What this means

Gross yield = annual rent ÷ value × 100; net yield is lower after costs. A higher net yield means better rental income relative to price.

What impacts this result most?
  1. 1.
    Annual rentHigh impact

    The numerator of the yield.

  2. 2.
    Property valueHigh impact

    A lower price raises the yield.

  3. 3.
    Running costsMedium impact

    Subtracted for net yield.

How to improve this result
  • Raise rent to market
  • Reduce running costs
  • Buy at a lower price
3 Important insights
  • Inflation often matters more than expected over the long run.
  • Small rate changes can significantly affect total outcomes.
  • Long-term consistency usually beats short-term timing.

Small, consistent changes compound: time in the market usually beats timing the market.

People usually ask next
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How it's calculated & sources
The Rental Yield Calculator uses the standard formula for this calculation. It runs entirely in your browser, so your inputs are never uploaded. Figures are educational estimates, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.
Key assumptions
  • Excludes vacancy and management unless entered

Free & no sign-up · runs entirely in your browser. Results are estimates for general information, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.

How it works

Gross yield = (annual rent ÷ property value) × 100. Net yield subtracts annual expenses (maintenance, tax, vacancy) from the rent first.

Frequently asked questions

Gross vs net yield?+

Gross ignores costs; net subtracts ownership expenses and is the more realistic figure.

Continue your journey

Where people usually head next.

Complete guide

Quick answers

Short, sourced answers to the questions people (and AI assistants) ask most.

What is Rental Yield?
A rental-yield calculator shows the annual return a property earns from rent as a percentage of its value — the quickest way to compare rental properties.
Why does Rental Yield matter?
Taxes, yields, loan-to-value and returns are all measured against the value.
How is Rental Yield calculated?
Gross yield uses rent only; net yield subtracts running costs (maintenance, tax, management, vacancy) to show what you really keep. Formula: Gross yield = annual rent ÷ property value × 100.
What is a good rental yield?
Gross 3-10%; net is lower after costs
What are common rental yield mistakes?
Use net yield after vacancy and costs
When should you use the Rental Yield Calculator?
Use it to compare rental properties, judge whether rent justifies the price, or set a target rent.

What is the Rental Yield Calculator?

A rental-yield calculator shows the annual return a property earns from rent as a percentage of its value — the quickest way to compare rental properties.

How the Rental Yield Calculator works

Gross yield uses rent only; net yield subtracts running costs (maintenance, tax, management, vacancy) to show what you really keep.

Gross yield = annual rent ÷ property value × 100
  • annual rent — 12 months of rent
  • property value — Purchase price or current value
  • costs — Subtract for net yield
  1. Enter your property value — the market price or appraised worth of a property.
  2. Enter your monthly rent — the amount a tenant pays to occupy a property each month.
  3. Read the result, then change any input to compare scenarios instantly — the Rental Yield Calculator recalculates as you type.

Understanding the inputs

What each value means, why it matters, and a typical range — so you can fill in the calculator with confidence.

Property Value

The market price or appraised worth of a property.

Why it matters:
Taxes, yields, loan-to-value and returns are all measured against the value.
Typical range:
Set by the local market.
How it affects results:
  • Higher: Higher taxes and a larger loan needed.
  • Lower: Lower taxes and a smaller loan needed.

Common mistake: Using the original purchase price years later instead of the current market value.

Monthly Rent

The amount a tenant pays to occupy a property each month.

Why it matters:
It is the income side of any rental return and a major household expense.
Typical range:
Often set so annual rent is about 3% to 10% of property value (the gross yield).
How it affects results:
  • Higher: Higher rental income or housing cost.
  • Lower: Lower rental income or housing cost.

Common mistake: Using gross rent and ignoring vacancy, maintenance and management costs.

Component definitions

The parts that drive this result and what each one contributes.

  • Annual rent — Twelve months of rent.
  • Property value — Purchase price or current value.
  • Costs — Subtracted for net yield.

Benchmark reference

What counts as poor, average or excellent for this metric.

Rental Yield

Poor<3% gross
Below average3-5%
Average5-7%
Above average7-9%
Excellent9%+ gross

Source: General rental-market ranges · Updated June 2026

Typical values

Rental Yield:
Gross 3-10%; net is lower after costs

Common interpretation errors

  • Use net yield after vacancy and costs
  • Yields vary widely by city
  • A very high gross yield can flag higher risk

What impacts results most

  1. 1.
    Annual rent (High impact)The numerator of the yield.
  2. 2.
    Property value (High impact)A lower price raises the yield.
  3. 3.
    Running costs (Medium impact)Subtracted for net yield.

Key assumptions

  • Excludes vacancy and management unless entered

Gross rental yield by monthly rent and property price

$1,0006.0%4.0%2.4%
$1,5009.0%6.0%3.6%
$2,00012.0%8.0%4.8%
$3,00018.0%12.0%7.2%

Worked example

Inputs: Annual rent $360,000; property value $6,000,000 Calculation: gross yield = annual rent ÷ value × 100 Result: 6% gross (net is lower after costs) What it means: Use net yield after vacancy and maintenance to judge if the rent justifies the price.

Compared to alternatives

Cap Rate vs Rental Yield

Two ways to judge a rental property's return.

Cap RateRental Yield
UsesNet operating incomeGross (or net) rent
Best forComparing income assetsQuick rent-vs-price check
IgnoresFinancingOperating costs (gross)

Bottom line: Use rental yield for a fast screen; cap rate for a financing-neutral comparison.

How Rental Yield connects to the concepts around it.

Cap Rate:
A property's net operating income as a percent of its value.
Property ROI:
Return on a property after costs and financing.

Reviewed sources & methodology

Methodology: Industry Standard · Last reviewed June 2026.

Keywords: rental yield, real estate, rent, investment.

This is an educational estimate, not financial advice. Rates, rules and figures change — verify the latest with the provider or a qualified advisor before you decide.

Reviewed by the Free Tools Galaxy editorial team · Updated June 2026 · Calculated privately in your browser.

Frequently asked questions

Is the Rental Yield Calculator free to use?+

Yes. Every tool on Free Tools Galaxy is 100% free, runs in your browser and requires no signup.

How accurate is the Rental Yield Calculator?+

Rental Yield Calculator uses the standard rental yield formula in double-precision arithmetic, so the same inputs always produce the same result and you can verify any figure by hand. It is an educational estimate — real-world outcomes depend on your actual rates, rules and assumptions.

Do you store my inputs?+

No. The Rental Yield Calculator runs entirely in your browser. Nothing is uploaded or saved to a server.

Can I use the Rental Yield Calculator on mobile?+

Yes — the interface is fully responsive and works on phones, tablets and desktops.

What are common mistakes to avoid?+

The most frequent mistake is mixing units. Double-check your inputs use a single, consistent unit before clicking Calculate.

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Work out gross and net rental yield on any property.

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The fastest way is to use a free in-browser rental yield calculator: https://freetoolsgalaxy.com/tools/rental-yield-calculator. Work out gross and net rental yield on any property.

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