Free real estate calculator

Rental Yield Calculator

Compare gross yield and net rental yield before financing.

By Calculate My Property EditorialUpdated September 30, 2026Professional review pending
01 / Your inputs

Start with your property.

Property1 inputs
USD
Use the agreed purchase price, excluding closing costs.
Acquisition2 inputs
USD
Cash fees paid at acquisition; do not include the down payment.
USD
Include materials, labor, permits and a contingency.
Income4 inputs
USD / month
Use rent for one unit; enter other income separately.
units
Rent above is per unit.
USD / year
Parking, laundry or other recurring revenue.
%
Apply to scheduled gross income; include credit loss.
Operating expenses8 inputs
USD / year
Use the expected post-purchase bill, including reassessment.
USD / year
Property and landlord cover, not mortgage insurance.
%
Charged against collected income in this model.
%
Routine repairs as a share of collected income.
%
Future roofs and replacements. Deducted after NOI.
USD / year
Include only owner-paid dues.
USD / year
Exclude amounts paid directly by tenants.
USD / year
Legal, accounting, licensing and other recurring costs.
Financing5 inputs
%
Loan amount as a share of purchase price.
%
Contract note rate; fees and points are entered separately.
years
Remaining amortization period, not a balloon maturity.
%
One point equals 1% of loan principal.
Projection4 inputs
years
Cash flows occur at year end; sale happens in the final year.
%
Scenario assumption, not a price forecast.
%
Net income and reserves grow at the same assumed rate.
%
Selling expenses as a share of future sale price.
All amounts in USD.
Your estimate

Gross rental yield

8.23%Based on your inputs · USD
Net rental yield
5.09%
Annual gross income
$28,800
Annual NOI
$17,803
See the breakdown
Scheduled gross income
$28,800
Vacancy / credit loss
$1,440
Operating expenses
$9,557
Net operating income
$17,803
Annual debt service
$20,957
Capital reserve
$1,368
Annual cash flow
-$4,522
The formula

Income, operating expenses and financing

Assumptions & limitations (1)
  • Illustrative, pre-tax analysis. Capital reserves are deducted after NOI. Operating percentages apply to collected income.
02 / Your next decisionCap RateDSCRCash on Cash Return
External resource

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Check lender licensing, fees, reserves and repayment terms with your saved numbers.

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Planning estimate. Editorially sourced; independent professional review is pending. How we calculate
Worked example

Follow the default numbers.

With purchase price of $350,000, monthly rent of $2,400, the model gives gross rental yield: 8.23%.

The formula is income, operating expenses and financing. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.

Gross and net yield answer different questions

Gross yield divides scheduled annual rental income by purchase price. Net yield uses NOI after vacancy and ordinary operating expenses. Both exclude financing, so they help compare properties before choosing a loan. The denominator is purchase price rather than all acquisition cash. If you compare a quote using total project cost, adjust the inputs or denominator consistently.

Reserves affect spendable income

A replacement reserve sits after NOI in this model. It therefore does not reduce net yield, but it does reduce cash you could withdraw. A property with deferred maintenance can need a much larger reserve than a newer home. Do not treat a headline yield as a distribution rate without checking the cash-flow breakdown.

Keep your assumptions with the result

Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.