Rental Yield Calculator – Compare Property Income Potential
Calculate gross rental yield from annual rent and property value. Compare investment properties and assess income potential. Enter your figures to get the yield percentage instantly.
Rental Yield Calculator
Calculate gross rental yield: annual rent as a percentage of property value. Useful for comparing investment properties.
Rental yield formula
Gross Rental Yield (%) = (Annual Rent ÷ Property Value) × 100
This is gross yield. Net yield subtracts vacancy, maintenance, and other costs from rent before dividing by property value.
Understanding rental yield
Rental yield measures the income a property generates relative to its value. It is useful for comparing different properties and markets. A property worth 400,000 that earns 24,000 per year in rent has a gross yield of 6%. Higher yields often indicate stronger income but may come with higher risk or lower capital growth expectations.
Gross yield is simple to calculate and compare. Net yield is more accurate for planning because it accounts for vacancy, maintenance, property management, insurance, and other costs. To estimate net yield, reduce annual rent by your expected costs (e.g. 15–25% for many residential properties) before dividing by property value.
Use the rental yield calculator alongside the real estate ROI calculator and mortgage calculator to evaluate investment properties. Yield helps with income focus; ROI helps with total return including capital gains. Both are important for informed investment decisions.