Rental Yield Calculator
Calculate gross and net rental yield to compare investment properties and assess income potential.
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How to use this calculator
Gross yield uses total annual rent over the purchase price. Net yield deducts vacancy loss and annual costs from rent, then divides by total investment including purchase costs (stamp duty, legal fees, etc.).
- 1
Enter the property purchase price and the monthly rent you expect to charge or currently receive.
- 2
Add your annual running costs (council rates, insurance, property management, maintenance) and the purchase cost percentage for stamp duty and legal fees.
- 3
Set the expected vacancy weeks per year — even well-tenanted properties typically have 1–3 weeks between tenants.
Frequently asked questions
What is the difference between gross and net yield?
Gross yield is a quick benchmark calculated on full annual rent with no deductions. Net yield is more accurate — it accounts for vacancy loss, running costs, and purchase costs to show your real income return on total cash invested.
What is a good rental yield?
Rental yield benchmarks vary by country and city. In Australia and the UK, 4–6% gross yield is typical in metro areas. In the US, 6–10% gross yield is more common in regional markets. Net yield of 3–5% after costs is generally considered acceptable for a buy-and-hold strategy.
Should I include mortgage repayments in annual costs?
No. Rental yield is a property-level metric that excludes financing. It measures the income return of the asset itself. To assess your personal cash return after mortgage payments, calculate cash-on-cash return using your actual mortgage costs and down payment.
Rental Yield Calculator: Know Your Real Return Before You Buy
Gross vs Net Rental Yield: Which Should You Use?
Gross yield is widely quoted in property listings and gives a quick top-line sense of a property's income potential. However, it ignores the real costs of ownership. Net yield strips out vacancy loss and running costs to show what you actually take home. When comparing investment properties, always calculate net yield — two properties with the same gross yield can have very different net returns depending on their cost structure.
How Purchase Costs Reduce Your Real Return
Stamp duty, legal fees, building inspection costs, and mortgage establishment fees add 2–5% to your effective purchase price in most countries. These upfront costs reduce your net yield because they increase your total capital deployed without increasing rental income. Including these in your yield calculation gives a more accurate picture of your true return from day one.
Learn more from an authoritative source:
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →