Rental Yield Calculator

How to Use the Rental Yield Calculator

Use this rental yield calculator to estimate how much income a property generates relative to its price. Enter the property price, monthly rent, and annual property costs to compare gross and net rental yield before making a buy-to-let decision. 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.

1. Enter Property Price, Monthly Rent, and Annual Property Costs using the same units you plan to compare or report.
2. Read the main net rental yield first, then use the supporting outputs to understand the trade-offs behind that result.
3. Compare your numbers with the worked examples below if you want a quick reasonableness check.

What Your Result Means

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 net rental yield.

Scenario 1: $250,000 property with $1,800 rent and $3,600 annual costs. Inputs used: propertyPrice: 250000, monthlyRent: 1800, annualCosts: 3600. Example result: 7.20% net rental yield. This property produces $21,600 in annual rent. After $3,600 in annual costs, net income is $18,000, which is a 7.20% net yield on a $250,000 property. Scenario 2: $420,000 property with $2,600 rent and $5,400 annual costs. Inputs used: propertyPrice: 420000, monthlyRent: 2600, annualCosts: 5400. Example result: 6.14% net rental yield. Annual rent is $31,200 and net income after costs is $25,800, which gives a net rental yield of about 6.14% on the purchase price.

Formula and Assumptions

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.

1. Gross yield ignores annual costs, while net yield includes them.
2. Financing costs are usually evaluated separately from property operating yield.

When to Use This Rental Yield Calculator

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 mortgage calculator, roi calculator, electricity cost calculator, and savings calculator.

Common Mistakes to Avoid

Most bad outputs come from a few repeated input errors or interpretation mistakes. Use this short checklist before relying on the result.

1. Ignoring annual costs and relying only on gross yield.
2. Adding financing costs into an operating-yield comparison without a clear reason.
3. Using peak or best-case rent instead of a realistic average monthly figure.