Calculate gross and net rental yield on a property.
Calculated locally in your browser.
How do you calculate rental yield on a property?
Gross yield = annual rent ÷ property value × 100, and net yield = (annual rent − expenses) ÷ property value × 100. For example, 12,000 rent on a 200,000 property is a 6% gross yield. Net yield is more realistic because it accounts for running costs like maintenance and management.
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.
Why is net yield usually lower than gross yield?
Gross yield uses rent alone against the property value, while net yield subtracts running costs such as maintenance, management fees, insurance and periods without a tenant. Because those expenses are real, net yield gives a more realistic picture of the return you actually keep.
Which property value should I use?
You can use the purchase price for the yield at acquisition, or the current market value for the yield today. They give different results as prices change, so choose the one that answers your question and apply it consistently when comparing several properties.