Rental Yield Calculator
Calculate your property’s rental yield, cash flow, and return on investment.
Property Details
Property Purchase Price
$
Monthly Rental Income
$
Annual Expenses (Optional)
Property Tax / Year
$
Insurance / Year
$
Maintenance / Year
$
HOA Fees / Year
$
Property Management
%
Vacancy Rate
%
Mortgage Details (Optional)
Loan Amount
$
Interest Rate
%
Loan Term
▼
Rental Yield Analysis
0%
Net Rental Yield
0%
5%
10%
15%+
<4%
Poor
4-6%
Fair
6-8%
Good
8%+
Excellent
Gross Yield
0%
Cap Rate
0%
Monthly Cash Flow (NOI)
$0
Annual Cash Flow (NOI)
$0
Income vs Expenses
0%
Net Margin
Income $0
Expenses $0
Annual Cash Flow Breakdown
Gross Rental Income
$0
– Vacancy Loss
-$0
– Property Tax
-$0
– Insurance
-$0
– Maintenance
-$0
– HOA Fees
-$0
– Property Management
-$0
Net Operating Income (NOI)
$0
Understanding Rental Yield
Rental yield measures the annual return on your property investment from rental income. There are two main types:
Gross Yield = (Annual Rent / Property Price) × 100
Net Yield = (Annual Rent – Expenses) / Property Price × 100
Net yield provides a more accurate picture by accounting for operating expenses like taxes, insurance, and maintenance.
Cap Rate vs Rental Yield
Cap Rate (Capitalization Rate) and Net Rental Yield are often used interchangeably, but there are subtle differences:
Cap Rate focuses on the property’s Net Operating Income (NOI) relative to its market value, used primarily by commercial investors.
Rental Yield is more commonly used in residential real estate and typically based on purchase price rather than current market value.
What’s a Good Rental Yield?
- Below 4%: Generally considered poor. May not cover expenses or provide adequate return.
- 4-6%: Fair yield. Common in high-demand urban areas with strong appreciation potential.
- 6-8%: Good yield. Solid cash flow while maintaining property quality.
- 8%+: Excellent yield. Often found in emerging markets or value-add properties.
Important Considerations
- Mortgage payments: This calculator shows NOI before debt service. If financed, deduct mortgage payments for true cash flow.
- Capital expenses: Budget for major repairs like roof replacement, HVAC, or appliances (typically 1-2% of property value annually).
- Appreciation: Yield doesn’t include property appreciation, which can significantly impact total returns.
- Market research: Compare yields in your target area. High yields may indicate higher risk or lower appreciation potential.