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Estimate rental property yield from purchase price, monthly rent, and recurring annual costs.
Use this rental property calculator to compare income-producing properties without building a custom spreadsheet. It gives a quick gross and net yield view so you can decide which deals deserve deeper analysis. 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, Expected Monthly Rent, and Annual Running Costs using the same units you plan to compare or report.
- Read the main estimated net rental 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 net rental yield.
Scenario 1: $350,000 rental collecting $2,400 per month with $7,500 annual costs. Inputs used: propertyPrice: 350000, monthlyRent: 2400, annualCosts: 7500. Example result: 6.09%. This rental property produces 6.09% net yield after accounting for recurring annual costs. Scenario 2: $215,000 rental collecting $1,450 per month with $3,600 annual costs. Inputs used: propertyPrice: 215000, monthlyRent: 1450, annualCosts: 3600. Example result: 6.42%. A lower-priced rental with steady cash flow still comes out to 6.42% net yield in this scenario.
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 buy to let calculator, cap rate calculator, rental yield calculator, and mortgage 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.
