Enter the purchase price (include closing costs if you want), the monthly rent, and yearly expenses (property tax, insurance, HOA, maintenance, etc.). The calculator returns annual rent, gross yield, and net yield after expenses.
- Annual rent
- Gross rental yield
- Net rental yield (after expenses)
About this rental yield calculator
Rental yield is one of the fastest ways to compare real-estate investments. It measures how much rent a property generates each year relative to the total purchase price. This calculator helps you estimate both gross rental yield and net rental yield using three simple inputs: the purchase price, the monthly rent, and the yearly expenses. It’s useful when you want a quick benchmark before running a full cashflow model.
Gross yield looks only at income. It is computed as: annual rent (monthly rent × 12) divided by purchase price, then multiplied by 100 to get a percentage. Gross yield is helpful for comparing listings quickly, because it ignores how properties differ in costs. However, it can be misleading when expenses are high (for example, expensive HOA fees, insurance, property tax, frequent maintenance, or management costs).
Net yield goes one step further by subtracting yearly expenses from annual rent before dividing by the purchase price. This gives a more realistic estimate of performance, because it reflects what remains after the main recurring costs. In practice, net yield still does not include financing, income tax, vacancy periods, major repairs, or renovation costs, but it offers a better “apples to apples” comparison than gross yield alone.
Privacy matters: this tool runs 100% locally in your browser. Your inputs are not uploaded to any server, and nothing is stored. You can use it to test scenarios (different rents, different expense levels, different purchase prices) and immediately see how sensitive yield is to each variable. As a rule of thumb, small changes in rent or price can produce noticeable changes in yield, so it’s worth trying a conservative and an optimistic scenario.
Tip: for a more complete analysis, consider adding a vacancy rate (e.g., 5–10%) and an annual maintenance reserve.
What is this rental yield calculator used for?
This rental yield calculator is used to estimate the profitability of a real estate investment by calculating gross rental yield and net rental yield from rent, purchase price, and yearly expenses.
Who is this tool useful for?
- Real estate investors comparing multiple properties
- First-time buyers evaluating a rental project
- Landlords reviewing current property performance
- Anyone doing a quick real estate profitability check
Concrete examples
- Comparing two apartments with different prices and rents
- Estimating yield before making an offer on a property
- Testing how expenses impact long-term profitability
- Checking if a rental meets a target yield percentage
Common mistakes
Common mistakes include ignoring recurring expenses, forgetting vacancy periods, or relying only on gross yield. Gross yield alone can be misleading when maintenance, taxes, or management costs are high.
Limits and alternatives
This calculator provides a simplified yield estimate. It does not include financing costs, income taxes, capital gains, vacancies, or major renovation expenses. For deeper analysis, a full cashflow or ROI model is recommended.
Educational summary
Rental yield is a quick comparison metric, not a complete investment decision. Using both gross and net yield helps investors better understand the real performance of a rental property before going further.