Calculators › Rental Yield Calculator
Deal analysisBy Cedrick Reese, Property Rental Calculator
Free calculator that shows gross and net rental yield side by side, so you never mistake the napkin-math number for what you actually keep.
Your property
Taxes, insurance, maintenance, vacancy, management. For net yield.
The US average gross rental yield runs in the mid-to-high 6% range nationally, but a "good" yield is entirely market-dependent. Not financial advice.
Gross rental yield divides your annual rent by the property's value, a fast first screen you can run on any listing. Net rental yield subtracts your actual operating expenses first, and it is the number that reflects what you really keep. The two can diverge a lot: a property with unusually high taxes or HOA dues might look great on gross yield and mediocre on net. When you can, run both, and lean on net yield for the real decision.
A $300,000 property renting for $2,200 a month brings in $26,400 a year, an 8.8% gross yield. Subtract $9,000 of annual operating expenses and the net yield drops to about 5.8%, still solid, but a meaningfully different picture than the headline gross number.
They look almost identical, and often they are close in practice, but yield typically uses the purchase price as its denominator while cap rate uses net operating income against current market value, and cap rate explicitly excludes financing either way. Use the cap rate calculator to compare income-based value across deals; use yield to sanity-check a listing fast.
It depends heavily on the market. Slower-appreciation cash-flow markets often run higher yields, while high-appreciation coastal markets tend to run lower. There's no single number that fits every strategy.
Because it accounts for the real costs of owning the property, taxes, insurance, maintenance, vacancy, and management, that gross yield ignores entirely.
Purchase price if you're evaluating a deal to buy. Current market value if you're checking how a property you already own is performing today.
Cap rate is built from net operating income and excludes the mortgage by definition. Yield is a simpler income-over-price ratio. They often move together but aren't identical. See the cap rate calculator.
Cedrick Reese, a web developer, built this calculator on the standard gross and net rental yield formulas: annual rent over value for gross, and annual rent minus operating expenses over value for net, the same math investors use to screen a listing before running a full cap rate analysis. Both figures are checked against the cap rate calculator on this site so the two tools describe the same deal consistently even though yield and cap rate use different denominators. If the common convention for computing or reporting rental yield changes, this page gets updated to match.