Rental Yield Calculator

What Is Rental Yield?

Rental yield is the return on investment (ROI) from a rental property. It shows how much income you earn as a percentage of the property’s purchase price or market value.

There are two main types:

1. Gross Rental Yield
   • Formula:
   Gross Yield=Annual RentProperty Value×100\text{Gross Yield} = \frac{\text{Annual Rent}}{\text{Property Value}} \times 100
   • This is a simple calculation before considering any expenses.
2. Net Rental Yield
   • Formula:
   Net Yield=Annual Rent – ExpensesProperty Value×100\text{Net Yield} = \frac{\text{Annual Rent – Expenses}}{\text{Property Value}} \times 100
   • This gives a clearer picture by including costs like maintenance, insurance, property taxes, and vacancies.

Example:

• Property Value = $300,000
• Monthly Rent = $1,500 (Annual Rent = $18,000)
• Annual Expenses = $3,600
• Vacancy Rate = 5%
• Gross Yield = 6.0%
• Net Yield = 5.1%

How the Rental Yield Calculator Works

Our Rental Yield Calculator makes this process effortless. Here’s how you can use it:

1. Enter Property Value – The purchase price or current market value.
2. Enter Monthly Rent – The rent charged to tenants.
3. Add Annual Expenses – Costs like maintenance, insurance, taxes, and repairs.
4. Set Vacancy Rate – Estimated percentage of time the property is vacant.
5. Click Calculate – Instantly see:
   • Gross Rental Yield (%)
   • Net Rental Yield (%)
   • Annual Gross Income
   • Annual Net Income

A reset button is also available to start fresh with default values.

Why Use a Rental Yield Calculator?

• Quick Decision-Making – No need to calculate manually.
• Compare Properties – See which property gives better returns.
• Plan Finances – Understand cash flow and ROI before investing.
• Risk Management – Factor in vacancies and expenses to get a realistic picture.
• Investor-Friendly – Works for landlords, property managers, and buyers alike.

Real-Life Applications

A rental yield calculator is not just a math tool. It’s a decision-making partner in real estate:

• Landlords – Check if rental income covers costs.
• Investors – Compare multiple properties across locations.
• Real Estate Agents – Show clients the potential return on investment.
• Students & Beginners – Learn how property investment is evaluated.

Key Takeaways

• Gross yield shows total rent compared to property value.
• Net yield gives the real return after expenses.
• The Rental Yield Calculator provides instant results in seconds.
• It helps investors compare properties, manage risk, and make informed choices.

Try the Rental Yield Calculator Now

Don’t rely on guesswork when investing in property. Use our Rental Yield Calculator to see the real numbers before you buy or rent out a property.

It’s fast, accurate, and designed to give you clear insights into your rental income potential.