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Rental Yield Calculator
Evaluate real estate investments by calculating gross yield, net yield, cash flow, and cash-on-cash return.
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Needed for Cash-on-Cash Return
Gross Rental Yield
0%
Evaluating...
Net Rental Yield
0%
Annual Cash Flow
$0
Cash-on-Cash Return
N/A
How it works
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Gross Yield = (Annual Rent / Property Value) × 100
Net Yield = ((Annual Rent - Annual Expenses) / Property Value) × 100
Annual Cash Flow = Annual Rent - Annual Expenses - Annual Mortgage
Cash-on-Cash Return = (Annual Cash Flow / Total Cash Invested) × 100
Net Yield = ((Annual Rent - Annual Expenses) / Property Value) × 100
Annual Cash Flow = Annual Rent - Annual Expenses - Annual Mortgage
Cash-on-Cash Return = (Annual Cash Flow / Total Cash Invested) × 100
Examples
- $300k house, $2k/mo rent: Gross yield = ($24,000 / $300,000) = 8.0%.
- $200k condo, $1.5k/mo rent, $3k/yr HOA+Taxes: Net Yield = (($18,000 - $3,000) / $200,000) = 7.5%.
Frequently Asked Questions
What is considered a "good" rental yield?
Typically, a gross yield above 7% is considered excellent in many markets. 5-7% is good, 3-5% is fair (common in high-appreciation areas), and under 3% is low. This varies heavily by location and asset class.
What's the difference between Gross and Net Yield?
Gross yield only looks at rent vs property value. Net yield subtracts your operating expenses (property taxes, insurance, HOA, maintenance) to give a more realistic picture of the property's income generation.
Why doesn't Net Yield include my mortgage?
Yield metrics evaluate the property's performance regardless of how it's financed. Your specific mortgage depends on your leverage. "Cash-on-Cash Return" is the metric that includes your mortgage payments.