Calculate gross and net rental yield on a property.
Calculated locally in your browser.
Understanding your result
Net yield is more realistic because it accounts for running costs.
Formula and method
Gross yield = annual rent ÷ property value × 100. Net yield = (annual rent − expenses) ÷ property value × 100.
Assumptions and limitations
Yield ignores mortgage costs, capital growth, vacancy periods and taxes. Use it as a first screen, then model full cash flow.
Worked example
12,000 rent on a 200,000 property is a 6% gross yield.
How it compares
| Measure | Gross yield | Net yield |
|---|---|---|
| Includes expenses | No | Yes |
| Realism | Headline only | More accurate |
How to use this tool
- Enter the annual rent and property value.
- Optionally add annual expenses for net yield.
Common mistakes to avoid
- Using monthly rent instead of annual.
About the Rental Yield Calculator
Rental yield expresses annual rent as a percentage of a property’s value — a quick gauge of return.
Who should use this tool
Property investors and landlords comparing the income return of rental properties.
Benefits
- Compare the income return of different properties.
- See both gross and net yield after expenses.
- Screen deals quickly before deeper analysis.
Practical use cases
- Shortlisting rental properties to buy.
- Reviewing the return on a property you own.
- Comparing rental markets.
Frequently asked questions
Gross or net yield?
Net yield reflects real returns after expenses; gross yield is a simpler headline figure.