Property Rental Yield Calculator
Gross and net rental yield.
Calculate gross and net rental yield on a property investment. Runs in your browser with a transparent formula — free and no signup.
What this tool does
Enter property value, annual rent, and annual costs. The tool shows gross and net yield.
Enter Values
Formula Used
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Calculations, display, or translation — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
300,000 property, 18,000 annual rent = 6% gross yield. After 4,800 annual costs, net rent 13,200 = 4.4% net yield. Yield compressed lately — 4-6% net is typical urban, 6-8% in regional markets. Compare against mortgage rate to see whether the deal makes sense.
Quick example
With property value of 300,000 and annual rent of 18,000 (plus annual costs of 4,800), the result is 4.40%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Property Value, Annual Rent, and Annual Costs. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
What's happening under the hood
Net rent divided by property value. Gross yield uses rent without costs. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Stress-testing the plan
Run the calculation at your current rate, then run it again at a rate 2–3 percentage points higher. That's roughly what a product reset could bring at renewal, and it's a useful check on whether you can afford the mortgage in a higher-rate world, not just today's.
What this doesn't capture
The figure excludes arrangement fees, valuation costs, legal fees, insurance, and any early-repayment charges — those can add several thousand to the headline cost. Rate changes at renewal for fixed-term deals will shift the picture further. Use this for the core interest/principal math and add the other costs on top.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the logistics real estate calculator, the mortgage debt yield calculator, and the rental yield vs mortgage cost calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Rental yield produces a percentage based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Net rent divided by property value. Gross yield uses rent without costs.
References
Frequently Asked Questions
Good yield target?
Costs to include?
Gross vs net yield?
Should I include appreciation?
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