Rental yield calculator
Gross and net rental yield on a property.
Fill in the fields and the result will appear here automatically.
Shows rental income relative to a property purchase price. Gross yield uses annual rent; net yield subtracts the entered annual costs and may be negative. For example, gross 6% with costs equal to 2% of the price gives net 4%. The separate payback row always uses gross rent, even when costs are entered. A deposit comparison also needs taxes, liquidity, risks and price changes, none of which is valued here.
How it works
Formula and logic
Monthly rent M gives annual rent A=12×M; annual mode takes A directly. For price P>0, gross yield is 100×A/P. With costs C>0, net yield is 100×(A−C)/P, including a negative result if C>A; blank costs mean 0. Simple gross payback P/A neither subtracts costs nor discounts future receipts. All money uses one currency basis, without conversion.
Example
A flat costing 10,000,000 let at 50,000 a month gives a gross yield of 6.00%. Boundary: price 1000, annual rent 100 and costs 150 give gross 10%, net −5%, and gross payback 10 years. With rent 0 and costs 50, net is −5% and the payback row is absent.
Fields and units
- Purchase price — $
- Rent is given — list option
- Annual rent — $
- Monthly rent — $
- Annual costs — $
How to use
- — Enter the purchase price.
- — Give the rent per year or per month.
- — Optionally add annual costs — the net yield then appears.
Method and limitations
- Calculation method
- Formula and logic
- Limitation
- Yield uses only entered rent and costs; price changes, borrowing, acquisition costs and discounting are excluded. Payback is always gross, even when a net-yield row is shown.
FAQ
How does gross yield differ from net?
Gross uses all entered rent; net deducts costs. Net is useful for comparing cash flows, but does not make rental property and a deposit equivalent in risk, taxes, term or liquidity.
What counts as annual costs?
Your selected annual total, such as tax, insurance, maintenance and repairs. Count vacancy rent loss once: either reduce annual rent to expected receipts, or subtract missed rent as a cost from full rent. Do not do both.
Is property price growth included?
No. Only rental income is computed. Capital appreciation is a separate component and an unpredictable one.
What does the payback period show?
The row is simple gross payback: purchase price ÷ annual rent, equal to 100 ÷ gross yield in percent even with costs entered. It is neither net nor discounted payback and assumes unchanged rent.