Rental Yield Calculator
Rental yield tells you how much annual income a property generates relative to its value. Gross yield is calculated before expenses and gives a quick comparison across properties. Net yield deducts vacancy and operating expenses to show your true income return. Both are essential starting points for any buy-to-let analysis. Enter your property details below to see both figures instantly.
Rental yield formulas
Gross Yield (%) = Annual Rent / Property Value x 100
Net Yield (%) = (Annual Rent x (1 - Vacancy Rate) - Annual Expenses) / Property Value x 100
Net yield subtracts vacancy losses and all operating costs from gross rent before dividing by property value. This gives a more realistic picture of your actual income return.
What expenses to include in net yield
- Property management fees (typically 8 to 12% of monthly rent)
- Property taxes (annual)
- Landlord insurance
- Maintenance and repairs (budget 1% of property value per year as a rough guide)
- Utilities paid by landlord
- Accounting and legal costs
- Do NOT include mortgage payments (these are financing costs, not operating expenses)
Rental yield calculator: frequently asked questions
What is rental yield?
Rental yield is the annual rental income expressed as a percentage of the property value. Gross rental yield uses total rent before expenses; net rental yield deducts operating expenses and vacancy losses to give a more accurate picture of income return.
What is the gross rental yield formula?
Gross Rental Yield (%) = Annual Rent / Property Value x 100. For example, if a property is worth $300,000 and generates $18,000 per year in rent, the gross yield is 6%.
What is the net rental yield formula?
Net Rental Yield (%) = (Annual Rent - Annual Expenses - Vacancy Loss) / Property Value x 100. Expenses include property management fees, maintenance, insurance, property taxes, and other operating costs.
What is a good rental yield?
A gross rental yield of 5 to 8% is commonly cited as reasonable for residential property in the United States, though this varies widely by market. Net yields are typically 1 to 2 percentage points lower after expenses. Investors compare yield to local benchmarks and alternative investments like bonds.
How does rental yield differ from cap rate?
Rental yield uses property value in the denominator and focuses on rent income. Cap rate uses property value and focuses on net operating income (which accounts for vacancy and all operating expenses). Net rental yield and cap rate are similar but cap rate is more commonly used in US commercial real estate analysis.
Official sources
- National Association of Realtors (NAR): Housing Statistics.
- U.S. Census Bureau: Housing Vacancies and Homeownership Survey.
- Harvard Joint Center for Housing Studies: State of the Nation's Housing.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.