Reviewed November 2026 · Estimate only, not financial advice.
Rental yield is the rent a property produces compared with its price. Enter the monthly rent, the property value and the annual expenses to get the gross yield — and the net yield after costs.
How This Rental Yield Calculator Works
Gross yield divides the annual rent by the property value. Net yield subtracts the annual running costs first — taxes, insurance, maintenance, management and vacancy — so it shows the yield you actually keep. Both are percentages of the property value, which makes different properties easy to compare.
Gross yield = Annual rent ÷ Property value × 100
Net yield = (Annual rent − Annual expenses) ÷ Property value × 100
Annual rent = monthly rent × 12. Mortgage payments are not an expense here — yield measures the property, not the loan.
Worked example: $1,500 a month rent on a $300,000 property with $3,600 a year of expenses. Annual rent = $18,000. Gross yield = $18,000 ÷ $300,000 = 6.00%. Net yield = ($18,000 − $3,600) ÷ $300,000 = 4.80%.
Practical tips
Net yield is the honest number.Listings quote gross yield because it looks bigger. A 6% gross yield is often a 4–5% net yield once costs are counted — always ask for the net figure.
Compare within one market.A 4% yield in a high-growth city can beat a 7% yield in a declining one, because price growth is not in the yield at all. Yield is income only.
Count vacancy as an expense.One empty month a year costs about 8% of the rent. If your expenses field does not include a vacancy allowance, add roughly 5–8% of annual rent.
Yield and cap rate are cousins.Net yield and cap rate use the same idea — net income over value — with slightly different expense definitions. The Cap Rate Calculator shows the investor version.
Frequently Asked Questions
What is rental yield?
The annual rent a property produces as a percentage of its value. Gross yield uses the full rent; net yield subtracts the annual running costs first.
What is a good rental yield?
US residential rentals commonly yield 4–7% gross, or 3–5% net. Higher yields usually come with higher risk, lower price growth, or more management work.
What counts as an annual expense?
Property tax, insurance, maintenance and repairs, property management fees, HOA dues, and a vacancy allowance of roughly 5–8% of rent. Mortgage payments are not included.
Is gross or net yield more important?
Net yield — it is the return you actually keep. Gross yield is useful for a quick first screen, but never buy on gross yield alone.
Does yield include house price growth?
No. Yield measures rental income only. Total return is yield plus price appreciation (minus costs) — that is why a low-yield property in a growing area can still be a good investment.
Is this financial advice?
No. This is a planning estimate only, not financial advice.
