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Rental Yield Calculator

Work out the return on a rental property. Enter the purchase price and monthly rent, add your running costs, and this calculator gives you the gross yield, the net yield, and your annual cash flow.

Property & Income

Annual Expenses

How It Works

Rental yield expresses the income a property generates as a percentage of its value. This calculator reports two figures that investors rely on:

  • Gross yield ignores costs — it is simply the annual rent as a share of the purchase price. It is quick to compare listings but overstates real returns.
  • Net yield subtracts all running costs from the rent, then divides by your total investment (price plus purchase costs). It reflects what actually lands in your pocket.
Formulas:
  • Gross yield = (Annual Rent ÷ Purchase Price) × 100
  • Net yield = (Effective Rent − Annual Expenses) ÷ Total Investment × 100
  • Effective Rent = Annual Rent × (1 − Vacancy %)
  • Cash Flow = Effective Rent − Annual Expenses

A vacancy allowance reduces the rent to account for periods with no tenant. Cash flow is the money left after every expense — a positive number means the property pays for itself, a negative number means you top it up each year.

Tips for Investors

Improve the Yield

  • Negotiate the purchase price — it drives both yields
  • Keep vacancy low with reliable tenants and fair rent
  • Self-managing saves the management fee, but costs time

Be Conservative

  • Budget realistic maintenance — older homes cost more
  • Include a vacancy allowance even in strong markets
  • Compare net yield against savings rates and other assets

Related Utils

Home Affordability Mortgage Closing Costs Property Comparison

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