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Rental Yield Calculator
Rental yield expresses annual rent as a percentage of a property's value. Enter value, rent, and costs to get both the gross headline yield and the net yield that actually matters.
Educational calculators — always consult a licensed professional before making financial decisions.
Current market value or what you'd pay.
Gross rent you collect each month.
For net yield. Estimate as a % of rent, or enter your own total.
Typical range 20–25% for long-term rentals.
Tax + insurance + maintenance + management + repairs. Exclude mortgage.
Net Rental Yield
6.7%
Gross yield 8.6% · $30,000 rent/yr
■ Net yield ■ Gross yield — versus the US healthy band.
Yield excludes mortgage payments and income tax. Net yield uses your cost estimate — refine it for a precise figure. Estimate only; consult a licensed professional.
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Gross yield gets attention; net yield tells the truth
Rental yield is the simplest way to express how hard a property's price is working for you. Gross yield = annual rent ÷ property value. It's the number in listing headlines, but it flatters every property equally because it ignores costs. Net yield subtracts the real running costs — property tax, insurance, maintenance, management, and repairs (but not the mortgage) — before dividing by value, and it's the figure that actually predicts whether the property earns its keep.
What's a good yield? It depends heavily on the market. US cash-flow markets in the Midwest and Southeast can deliver net yields of 6–8% or more, while high-priced coastal metros often sit at 3–5% because values are steep relative to rents. A net yield in the 5–8% range is generally considered healthy. The gap between gross and net is usually 20–35% of rent — a property advertised at an 8% gross yield might net closer to 6% once costs are honest.
Yield is close kin to cap rate; the main difference is that cap rate is typically quoted on purchase price while yield can use current value. Neither includes financing — for that, run cash-on-cash return.
How it works
Enter value and rent
Input the property value (or purchase price) and monthly rent.
Set annual costs
Estimate costs as a percentage of rent, or enter your own annual total.
Compare gross vs net
See both yields against the healthy band for the market.
Gross vs net rental yield: worked example
| Property value | Monthly rent | Gross yield | Net yield (22% costs) |
|---|---|---|---|
| $200,000 | $1,600 | 9.6% | 7.5% |
| $350,000 | $2,500 | 8.6% | 6.7% |
| $500,000 | $3,000 | 7.2% | 5.6% |
| $750,000 | $3,800 | 6.1% | 4.7% |
Net yield assumes running costs of 22% of rent (tax, insurance, maintenance, management, repairs) and excludes any mortgage.
Frequently asked questions
What is a good rental yield in the US?+
It varies widely by market. Cash-flow markets in the Midwest and Southeast can produce net yields of 6–8%+, while coastal metros often sit at 3–5% because prices are high relative to rents. A net yield in the 5–8% range is generally considered healthy. Yield is closely related to cap rate — the main difference is that cap rate is usually quoted on purchase price while yield can use current market value.
What is the difference between gross and net rental yield?+
Gross rental yield is annual rent divided by the property's value — a headline figure that ignores costs. Net rental yield subtracts the yearly running costs (property tax, insurance, maintenance, management, and repairs, but not the mortgage) before dividing by value, so it reflects what the property actually earns. Net yield is always lower than gross, and the gap is typically 20–35% of gross rent depending on the property.
How do I calculate rental yield?+
Gross yield = (monthly rent × 12) ÷ property value × 100. Net yield = (annual rent − annual running costs) ÷ property value × 100. For example, a property worth $350,000 renting for $2,500/month has a gross yield of about 8.6% ($30,000 ÷ $350,000); if running costs are $6,600 a year, net yield is about 6.7%.
Run your next deal through the numbers.
Back to the calculator ↑Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.