Rental Yield Calculator
Calculate gross and net rental yield, annual cash flow, and payback period for your investment property.
How It Works
Enter the property purchase price, monthly rental income, and annual expenses (maintenance, insurance, property tax, management fees). The calculator computes gross yield (rent/price), net yield (rent minus expenses/price), and annual cash flow. Compare multiple properties side by side to identify the best investment opportunity.
When to Use It
- Evaluating buy-to-let investment properties by comparing gross and net rental yields across listings.
- Deciding whether to increase rent or invest in renovations based on the impact on net yield.
- Building a portfolio strategy by setting minimum yield thresholds for property acquisitions.
Frequently Asked Questions
What is a good rental yield?
In most European markets, 4-6% gross yield is considered decent for residential property. Net yield above 4% after expenses is strong. Prime city locations may yield 2-3% but offer better capital appreciation. Secondary cities often offer 6-8% but with higher vacancy risk.
What is the difference between gross and net yield?
Gross yield = (Annual Rent / Purchase Price) x 100. Net yield deducts all expenses (maintenance, insurance, taxes, management, vacancy allowance) from the annual rent before dividing by purchase price. Net yield is the true measure of investment performance.
Should I include mortgage costs in the calculation?
Standard rental yield calculations exclude mortgage costs to allow fair comparison between properties regardless of financing. However, for your personal cash flow analysis, include mortgage payments in the expenses to see actual monthly profit or loss from the investment.
All calculations happen in your browser. No data is sent to any server.