Calculator

Rental Yield Calculator

Gross and net rental yield — the ratio investors quote most often when comparing properties by price.

Rental Yield Calculator

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Annual rent

$26,400
Gross rental yield8.8%
Net rental yield6.8%

The formula

Gross yield

Annual rent ÷ price

Net yield

(Annual rent − annual expenses) ÷ price

Gross yield is the headline number most listings quote — it is fast to calculate but ignores every operating cost, which is why net yield tells a more complete story.

Yield and cap rate are closely related concepts; net yield here is calculated the same way a cap rate is, expressed as a percentage of purchase price rather than current value.