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Estimate net rental yield on an investment property using rent, price, and annual operating costs.
Use this investment property calculator when you want a quick yield-style snapshot of how a rental listing performs before financing is added. The calculator is designed to give a fast answer, but the quality of the answer still depends on accurate inputs and a clear idea of what decision you are trying to support.
- Enter Property Price, Monthly Rent, and Annual Property Costs using the same units you plan to compare or report.
- Read the main estimated investment-property yield first, then use the supporting outputs to understand the trade-offs behind that result.
- Compare your numbers with the worked examples below if you want a quick reasonableness check.
Gross yield gives a quick first-pass property screen, while net yield shows a more realistic picture after recurring operating costs. On this page, the primary output is estimated investment-property yield.
Scenario 1: $315,000 property with $2,150 rent and $5,200 annual costs. Inputs used: propertyPrice: 315000, monthlyRent: 2150, annualCosts: 5200. Example result: 6.54%. This investment-property scenario produces a net rental yield of 6.54%. Scenario 2: $520,000 property with $3,150 rent and $8,700 annual costs. Inputs used: propertyPrice: 520000, monthlyRent: 3150, annualCosts: 8700. Example result: 5.60%. After annual costs, the property's net yield comes to 5.60%.
Core formula: gross yield = annual rent / property price * 100; net yield = (annual rent - annual costs) / property price * 100. The calculator annualizes monthly rent, then compares that income with the property price before and after recurring operating costs.
- Gross yield ignores annual costs, while net yield includes them.
- Financing costs are usually evaluated separately from property operating yield.
Use this calculator when comparing rental properties, screening deals, or checking whether expected rent justifies the purchase price. Related paths for follow-up analysis include rental yield calculator, property yield calculator, rental income calculator, and buy to let calculator.
Most bad outputs come from a few repeated input errors or interpretation mistakes. Use this short checklist before relying on the result.
- Ignoring annual costs and relying only on gross yield.
- Adding financing costs into an operating-yield comparison without a clear reason.
- Using peak or best-case rent instead of a realistic average monthly figure.
