Rental Yield Calculator
Work out a rental property's gross and net yield from its price, buying costs, rent, the time it sits empty and running costs, before mortgage and tax.
- Free
- No sign-up to try
- Works as you type
Rental yield
Gross yield
6.00%
Net yield
4.19%
Net rental income per year
$10,900
Net rental income per month
$908
- Gross yield = rent per month × 12 ÷ property price × 100.
- Net income = yearly rent × (1 − share of the year empty) − running costs.
- Net yield = net income ÷ (price + buying costs) × 100.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Rental Yield Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Property price or value
- $250,000
- Buying costs (taxes, legal fees, survey)
- $10,000
- Rent per month
- $1,250
- Share of the year the property is empty
- 4 %
- Running costs per year (management, insurance, repairs, fees)
- $3,500
Results
- Gross yield
- 6.00%
- Net yield
- 4.19%
- Net rental income per year
- $10,900
- Net rental income per month
- $908
How it's calculated
- Gross yield = rent per month × 12 ÷ property price × 100.
- Net income = yearly rent × (1 − share of the year empty) − running costs.
- Net yield = net income ÷ (price + buying costs) × 100.
- Assumes: Figures are before mortgage costs and income tax; with a mortgage, the return on your own cash will differ.
- Assumes: Some people work out net yield on the price alone; this uses price plus buying costs, which gives a lower figure.
- Assumes: Changes in the property's value are not included.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Landlords
Check how a property's yield holds up after costs.
Buyers
Compare two properties on the same basis before an offer.
Letting agents
Show an owner what costs do to their return.
Good to know
What to consider
- Yields are before mortgage interest and income tax; the return on your own cash will differ.
- An estimate, not financial or investment advice.
Questions
About the Rental Yield Calculator
What's the difference between gross and net yield?
Gross yield is yearly rent over the price. Net yield takes off the time the property is empty and running costs, and here divides by price plus buying costs, so it's lower.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
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