Rental Yield Calculator

Calculate your property's annual rental yield instantly and free, showing the percentage return on your investment.

  • Free
  • No sign-up
  • Instant results

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How to use it

  1. Enter the purchase price of the property.
  2. Enter the total annual rent you expect to collect.
  3. Click Calculate to see the annual rental yield percentage.

What it does – The Rental Yield Calculator takes the purchase price of a property and the gross annual rent you expect, then instantly shows the rental yield as a percentage. Why it matters – Rental yield lets you compare the profitability of different properties or investment options without getting tangled in complex cash‑flow analysis. A higher yield generally means a better cash‑on‑cash return, while a low yield can signal that a property may not cover financing costs. How to read it – The resulting percentage tells you how much of your investment you earn back each year before expenses. For example, a 5 % yield means you earn five dollars for every hundred dollars invested annually. Use the figure to benchmark against market averages or your own target return, and decide if the property fits your investment strategy.

Pro tips

  • Include a small buffer for vacancy when entering rent.
  • Round the property value to the nearest thousand for quicker comparisons.
  • Enter rent before taxes to keep the yield comparable across markets.
  • Don’t forget to adjust for recent renovations that may raise rent.

Real-life examples

  • A first‑time investor comparing two duplexes to see which offers a better cash return.
  • A landlord evaluating whether to raise rent on an existing unit.
  • A real estate analyst benchmarking a new purchase against market average yields.

Case study

Sarah was eyeing a $250,000 condo that promised $1,200 monthly rent. Using the calculator, she saw the yield was 5.8 %. After spotting a similar property with a 7.2 % yield, she negotiated a lower price, raising her expected return to 8.4 %.

Frequently asked questions

What is rental yield?
It is the annual gross rent divided by the property’s purchase price, expressed as a percentage.
How is rental yield different from ROI?
Yield looks only at rent versus price, while ROI includes all costs, taxes, and appreciation.
Do I need to include expenses?
For this calculator, use gross rent only; expenses are considered separately.
Can I use this calculator for commercial properties?
Yes, as long as you input the purchase price and gross annual rent.
How often should I recalculate my yield?
Re‑run it whenever rent changes or you make a significant price adjustment.