Rental Yield Calculator

Evaluate the profitability of your investment property.

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About Our Rental Yield Calculator

Rental yield is a key metric for evaluating the profitability of a real estate investment. It represents the annual return from a rental property as a percentage of its total cost. Our calculator helps you determine both the Gross and Net Rental Yield to give you a comprehensive view of your investment's performance.

Rental Yield Formula

Gross Rental Yield: (Annual Rental Income / Property Price) * 100

Net Rental Yield: ((Annual Rental Income - Annual Expenses) / Property Price) * 100

Frequently Asked Questions (FAQ)

  • What is the difference between gross and net rental yield?
    • Gross Rental Yield is the return on investment before deducting any expenses related to the property. Net Rental Yield provides a more accurate picture by accounting for operating expenses such as maintenance, insurance, and property management fees.
  • What is a good rental yield?
    • A "good" rental yield can vary significantly based on location, property type, and market conditions.
    • Generally, a yield between 5% and 8% is considered good for residential properties. However, it's essential to research your local market to set realistic expectations.
  • What expenses should I include in the calculation?
    • When calculating net rental yield, you should include all ongoing expenses associated with the property, such as:
      • Property taxes
      • Homeowners insurance
      • Maintenance and repair costs
      • Property management fees
      • HOA (Homeowners Association) fees, if applicable
    • Mortgage payments are typically not included in this calculation, as the yield is assessed against the property's total value.