Quick answer
Gross rental yield = annual rent ÷ property price, and net yield = (annual rent − expenses) ÷ price. $1,800 monthly rent on a $300,000 property is a gross yield of 7.2%.
Enter monthly rent, price and optionally annual expenses. The calculator returns gross and net yield.
Related tools: Rental Property Calculator: Cash flow, cap rate and cash-on-cash return of a rental. Dividend Yield Calculator: Annual dividend as a percentage of the share price. Cap Rate Calculator: Capitalization rate of an income property.
How to use the Rental Yield Calculator
- Enter monthly rent ($) (0 or more).
- Enter property price ($) (above 0).
- Optionally, enter annual expenses ($) (0 or more).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Monthly rent | A number, in $ | ≥ 0 |
| Property price | A number, in $ | > 0 |
| Annual expenses (optional) | A number, in $ | ≥ 0 |
Formula and method
Formula
gross yield = annual rent ÷ price; net yield = (annual rent − expenses) ÷ price
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Net yield is shown only when you enter expenses.
Worked examples
This example is verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Monthly rent = 1800; Property price = 300000.
| Result | Value |
|---|---|
| Gross yield | 7.2% |
| Net yield | — |
The first line is the headline result (gross yield). Below it the rental Yield Calculator lists net yield, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
The calculation
Annual rent = $1,800 × 12 = $21,600; ÷ $300,000 = 7.2%. If expenses are $6,000, net yield is $15,600 ÷ $300,000 = 5.2%.
Interpreting
Gross yield ignores costs, vacancies and financing, so it overstates returns. Yields in the UK are quoted as a percentage like this; investors use net yield to compare. Price must be positive.
How the result changes with monthly rent
Holding every other input at the first worked example, this table changes only monthly rent. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Monthly rent | Gross yield | Net yield |
|---|---|---|
| 900 | 3.6% | — |
| 1800 | 7.2% | — |
| 3600 | 14.4% | — |
| 7200 | 28.8% | — |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Property price: entering "0" shows "Property price must be greater than 0." beside that field and no result.
- Monthly rent: entering "-1" shows "Monthly rent must be at least 0." beside that field and no result.
Choosing between the Rental Yield Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Rental Property Calculator](/real-estate/rental-property-calculator/) | purchase price, down payment and mortgage rate | Annual cash flow |
| [Dividend Yield Calculator](/finance/dividend-yield-calculator/) | annual dividend per share and share price | Dividend yield |
| [Cap Rate Calculator](/real-estate/cap-rate-calculator/) | net operating income and property value | Cap rate |
| [Cash on Cash Return Calculator](/real-estate/cash-on-cash-return-calculator/) | annual pre-tax cash flow and total cash invested | Cash-on-cash return |
| [House Flipping Profit Calculator](/real-estate/house-flipping-profit-calculator/) | purchase price, renovation cost and holding costs | Profit |
Background: rental property metrics
Rental property metrics answer different questions. The cap rate is net operating income divided by the purchase price and ignores financing; cash flow is income minus operating expenses minus debt service; cash-on-cash return divides annual cash flow by the cash you actually invested. Rules of thumb such as the 1% rule (monthly rent at least 1% of the price) are quick screens, not decisions.
Check the assumptions behind any result: vacancy, management fees, repairs and taxes. Published benchmark ranges for a good cap rate or return vary between sources.
Assumptions and limitations
- Price must be positive
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for property price and monthly rent to confirm this.
Frequently asked questions
What is a good rental yield?
5 to 8% is often cited.
What is the difference from cap rate?
Net yield is similar to the cap rate.
Do I include mortgage payments?
No. Yield is based on rent and price (and optionally expenses); mortgage payments are financing and are not part of it.
What does the Rental Yield Calculator calculate?
Gross and net rental yield on a property. It returns Gross yield and Net yield.
What formula does the Rental Yield Calculator use?
gross yield = annual rent ÷ price; net yield = (annual rent − expenses) ÷ price. Net yield is shown only when you enter expenses.
What do I need to enter in the rental Yield Calculator?
You enter Monthly rent ($) and Property price ($). Optional: Annual expenses ($).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Price must be positive.
What is an example of a rental Yield result?
With monthly rent 1800 and property price 300000, the gross yield is 7.2%.
Can I rely on this calculator for a decision?
Estimates only. Taxes, fees and lender or authority rules vary by place and date, so confirm figures with the relevant authority or professional. For this calculator in particular: Price must be positive.
Related calculators
- Rental Property Calculator — Cash flow, cap rate and cash-on-cash return of a rental.
- Dividend Yield Calculator — Annual dividend as a percentage of the share price.
- Cap Rate Calculator — Capitalization rate of an income property.
- Cash on Cash Return Calculator — Annual pre-tax cash flow relative to the cash you invested.
- House Flipping Profit Calculator — Profit and return on cost of a renovate-and-sell project.
- Real Estate ROI Calculator — Total return on a property from sale gain and net income.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.