Turn rent and annual costs into a clearer property return view

Rental yield is a simple way to compare the income return of a property against its purchase price. This page keeps the original calculation logic straightforward, then adds practical outputs such as annual net income, gross yield, net yield, ROI, charts, comparison, and a printable PDF layout.

Gross and net yield Annual net income Charts and PDF export Compare and save
Gross yield
Rent before expenses
Net yield
Income after costs
ROI
Annual return estimate

How to use the Rental Yield Calculator

  1. 1

    Enter the property price

    Type the purchase price of the property you want to evaluate.

  2. 2

    Enter annual rent

    Add the total rental income you expect to receive over one year.

  3. 3

    Enter annual costs

    Include operating costs and optional other annual costs such as insurance or management fees.

  4. 4

    Calculate and compare

    Press Calculate Rental Yield to review net yield, ROI, charts, scenario compare, and the PDF export layout.

Detailed guide and references

What rental yield is

Rental yield measures the income return of a property relative to the purchase price. It is often used as a quick screening metric when comparing investment properties. Gross yield looks at rent before expenses, while net yield subtracts annual costs first.

House for rent sign on a lawn
Rental yield helps compare purchase price, rent, and annual cost burden

Formulas used on this page

This calculator follows the original source logic and uses these formulas:

  • Gross Rental Yield (%) = Annual Rental Income / Property Purchase Price × 100
  • Total Annual Expenses = Annual Operating Costs + Other Annual Costs
  • Annual Net Income = Annual Rental Income - Total Annual Expenses
  • Net Rental Yield (%) = Annual Net Income / Property Purchase Price × 100
  • ROI (%) = Annual Net Income / Property Purchase Price × 100

In this simplified model, ROI is the same as net yield because both are calculated from annual net income divided by purchase price.

Costs that matter

Expenses can change the investment picture quickly, so the net view is often more useful than the gross view alone.

Annual operating costs

  • Maintenance and repairs
  • Property taxes
  • Utilities paid by the owner
  • Routine property running costs

Other annual costs

  • Insurance
  • Management fees
  • Association or service charges
  • Other recurring ownership costs

Typical yields

Rental yields vary by region, property type, vacancy risk, and financing structure. General examples often discussed are:

  • Residential gross yield: about 4% to 8%
  • Residential net yield: about 2% to 6%
  • Commercial gross yield: about 6% to 12%
  • Commercial net yield: about 4% to 10%

These are broad reference ranges only. Local markets can be much higher or lower.

Practical tips

  1. Use realistic annual rent figures rather than optimistic peak market values.
  2. Include every recurring expense you expect to pay each year.
  3. Compare properties using both gross and net yield, not just one metric.
  4. Use this page as a screening tool and then do a deeper investment review.

FAQs

What is gross rental yield?

Gross rental yield is annual rental income divided by the purchase price. It does not subtract expenses.

What is net rental yield?

Net rental yield subtracts annual expenses before dividing by purchase price, so it usually gives a more realistic result than gross yield.

Why is ROI the same as net yield here?

This calculator uses annual net income divided by purchase price for both metrics, so ROI matches net rental yield in this simplified model.

Should I include insurance and management fees?

Yes. Add them under other annual costs if they are recurring yearly expenses related to the property.

Key takeaways

  • Gross yield shows rent before expenses
  • Net yield and ROI reflect annual costs in this model
  • Annual expenses can materially change property ranking
  • Charts make the rent versus cost structure easier to read
  • Scenario compare helps you review multiple properties or assumptions

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Calculator

Enter price, rent, and annual costs, then press Calculate Rental Yield

These results are for general reference only and may differ from actual property performance.