Quick examples
Gross Yield
8.00%
Net Yield
7.00%
Annual Rent
$24,000
Rental Yield Calculator — Quick Reference
The Rental Yield Calculator is an online tool that calculate gross and net rental yield on investment property. Everything for the Rental Yield Calculator is on this page: the interactive calculator, the formula, a worked example, step-by-step guidance, and frequently asked questions — no other pages required.
At a glance
- Main inputs
- Home price or rent
- Loan rate and down payment
- Holding period
- Main outputs
- Affordable payment
- Total cost of rent vs buy
- Yield or equity
Direct answers
What is the Rental Yield Calculator?
The Rental Yield Calculator is an online tool that calculate gross and net rental yield on investment property.
What formula does the Rental Yield Calculator use?
Gross rental yield is usually annual rent divided by property cost, multiplied by 100. Net rental yield goes further by subtracting maintenance, tax, vacancy, and other recurring ownership costs before the percentage is computed.
How does the Rental Yield Calculator work?
Gross Yield = (Annual Rent / Property Price) × 100. Net yield subtracts annual costs.
Formula Used
The equation below is what this calculator applies. Variable definitions follow when symbols are used.
Equation
Gross yield = (Annual rent / Property price) × 100
Additional rules
- Net yield subtracts annual costs from rent
Worked Example: $5,000,000 property, $240,000/year rent
Sample inputs and the results this calculator produces for the scenario below.
Inputs
- Property Price
- $5,000,000
- Annual Rent
- $240,000
- Annual Costs
- $40,000
Results
- Gross Yield
- 4.8%
- Net Yield
- ~4.0%
Gross yield ignores maintenance, vacancy, and tax. Net yield subtracts costs — compare net yield to FD or bond returns.
How Rental Yield Calculator Works
Gross Yield = (Annual Rent / Property Price) × 100. Net yield subtracts annual costs.
What to enter
Use the calculator above to set your amounts, rates, and tenure. Results update as you move sliders or type values — switch currency if you are planning in USD, INR, or another supported unit.
Step-by-step
- Open the Rental Yield Calculator and enter your amounts, rates, and time period in the input fields.
- Review the results panel — totals update instantly when you change any value.
- Compare the worked example and formula below to verify the math matches your scenario.
- Read the FAQs for common edge cases, tax notes, and planning tips specific to this calculator.
Rental Yield — Frequently Asked Questions
Each question is answered directly below. Expand any item for the full response.
How is rental yield calculated?
Gross rental yield is usually annual rent divided by property cost, multiplied by 100. Net rental yield goes further by subtracting maintenance, tax, vacancy, and other recurring ownership costs before the percentage is computed.
Why is net rental yield more useful than gross yield?
Because landlords do not keep the full rent as profit. Vacancy, brokerage, repairs, society charges, and taxes can reduce the effective return meaningfully.
What is a common mistake in rental-yield analysis?
Many buyers compare annual rent only with the purchase price and ignore registration, interiors, and financing cost. That overstates the yield and makes the investment look more attractive than it may be.
Should I judge a rental property only by yield?
No, because appreciation potential, location quality, tenant stability, and liquidity also matter. A property with a modest yield can still be reasonable, but it should fit the broader portfolio plan.
Disclaimer
- This calculator gives you an estimate only. It is not a promise of exact results.
- This is general information, not personal financial, tax, or legal advice.
- You are responsible for your own decisions. Talk to a qualified professional when it matters.
- Property costs like stamp duty, taxes, and maintenance are often not included here.
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