Calculator
Rental Yield Calculator
Estimate gross annual rent, net annual income, and net rental yield from property value, monthly rent, and annual expenses.
Result
Gross annual rent
$26,400.00
Net annual income
$18,400.00
Net rental yield
5.26%
How to use this calculator
What this calculator does
Estimate gross annual rent, net annual income, and net rental yield from property value, monthly rent, and annual expenses.
How to use it
Enter your property value, monthly rent, and annual expenses, then review the result, formula, example, and FAQs below. Try a few scenarios to see which inputs move the result most.
What the result means
Use the result as a direct calculation from the values you entered. If it looks off, check the inputs and formula shown on this page.
Browse more property & housing calculators for related estimates and comparisons.
Results are estimates for planning and education. Actual outcomes depend on local property prices, interest rates, taxes, fees, insurance, maintenance, rental demand, lender rules, tenancy terms, and personal circumstances.
Scenario guidance
When to use this
Use this when comparing rental properties from rent, property value, and expense assumptions before financing or tax analysis.
Example scenario
A buyer is comparing a $350,000 rental property with expected rent of $2,200 per month and wants a quick net yield estimate before deeper due diligence.
Inputs that usually matter most
- Property value, because yield is measured against the property price or value.
- Monthly rent, which drives gross rental income.
- Annual expenses, including maintenance, insurance, management, vacancies, and local fees if relevant.
Common mistake to avoid
Do not treat yield as guaranteed return; vacancy, repairs, financing costs, taxes, insurance, management fees, and local rental rules can change outcomes.
How to interpret the result
Use gross rent, net annual income, and yield to compare scenarios. Then review financing, taxes, vacancy, maintenance, local rules, and rental demand separately.
Results are estimates and are not property, tax, legal, accounting, or financial advice.
Formula
Gross annual rent is monthly rent multiplied by 12. Net annual income subtracts annual expenses before calculating net yield.
Worked example: rental property yield
$2,200 monthly rent creates $26,400 in gross annual rent. After $8,000 of annual expenses, net annual income is $18,400. On a $350,000 property value, the estimated net rental yield is 5.26%.
Frequently Asked Questions
Does this include mortgage payments?
No. It estimates net rental yield from property value, rent, and annual expenses before financing unless you include financing costs in expenses.
What if property value is zero?
The yield percentage is undefined because rental yield divides by property value.
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