Rental Yield Calculator
🏠 Free ToolCalculate gross and net rental yield, annual cash flow, and monthly income for any investment property. Factor in maintenance, taxes, insurance, and vacancy to see your true return.
How it Works
The rental yield calculator helps property investors evaluate the profitability of a rental property. Enter your property value, expected monthly rent, and annual operating expenses to instantly see both gross and net yields.
Gross yield gives a quick snapshot for comparing properties, while net yield accounts for real-world costs like maintenance, property taxes, insurance, and vacancy periods. The difference between the two reveals how much of your rental income is consumed by operating expenses.
Use the vacancy rate slider to model realistic occupancy scenarios. Even in strong rental markets, some vacancy is inevitable between tenants. A conservative vacancy estimate helps you avoid overestimating your returns.
The annual and monthly cash flow figures show the actual money you can expect to receive after all operating expenses, helping you plan your investment portfolio and assess whether a property meets your income requirements.
Frequently Asked Questions
What is the difference between gross and net rental yield?
Gross rental yield is calculated as annual rent divided by property value, ignoring expenses. Net rental yield subtracts operating costs (maintenance, taxes, insurance) and vacancy losses, giving a more accurate picture of your real return.
What is a good rental yield?
A gross yield of 5-8% is generally considered good in most European markets. Net yield above 4% is attractive. However, desirable locations may have lower yields but higher capital appreciation potential.
How does vacancy rate affect my return?
Vacancy rate reduces your effective rental income. A 5% vacancy rate means about 2.5 weeks per year without rental income. In high-demand areas, 3-5% is typical; in weaker markets, 8-10% or more may be realistic.
Should I include mortgage payments in the calculation?
This calculator focuses on property-level yield (return on total property value). Mortgage payments affect your cash-on-cash return (return on your invested equity), which is a separate metric.
What expenses should I include?
Include property taxes, building insurance, routine maintenance, property management fees, and any community/condo fees. Do not include mortgage payments or income tax, as those are investor-specific.