Rental yield calculator to compare gross vs net rental yield, cap rate, monthly cash flow before financing, and payback period from rent, vacancy, itemized expenses, purchase price, or current property value.
Use this rental yield calculator when you want to know what rental yield a property produces, whether the rent justifies the purchase price, how much monthly cash flow is left before financing, or how long it may take for the property to pay off. The calculator shows gross rental yield, net rental yield, cap rate, monthly cash flow before financing, and payback period in one place.
Use Quick mode for a fast buy-to-let or rental-property screening estimate from rent, vacancy, and one annual expense total. Switch to Advanced mode to itemize taxes, insurance, maintenance, management fees, utilities, service charges, and other expenses, and to compare yield based on purchase price or current property value. That makes it useful both for long-term landlords and for short-term rental owners who want a quick check on whether a property pays off under their assumptions.
Rental Yield Calculator FAQ
How do I calculate rental yield?
Gross rental yield is usually calculated by dividing annual rent by the property value, then multiplying by 100. Net rental yield goes further by adjusting rent for vacancy and subtracting annual operating expenses before dividing by the chosen property value.
What is the difference between gross rental yield and net rental yield?
Gross rental yield uses annual rent before vacancy and expenses. Net rental yield adjusts for vacancy and subtracts annual operating costs, so it gives a clearer view of the property’s actual income performance. This calculator shows both results separately.
Is rental yield the same as cap rate?
They are closely related. In many property investing contexts, cap rate is based on net operating income (NOI) divided by property price, while gross rental yield uses rent before those deductions. On this calculator, the main result is the net yield / cap rate based on NOI.
What is included in advanced mode?
Advanced mode lets you estimate annual operating expenses in more detail by splitting them into property taxes, insurance, maintenance, management fees, utilities paid by the landlord, HOA or service charges, and other annual costs. It also lets you compare yield based on purchase price or current property value.
Does this rental yield calculator include mortgage payments?
No. This calculator focuses on rental yield, cap rate, NOI, monthly cash flow before financing, and payback from rent, vacancy, operating expenses, and property value. Mortgage payments, financing costs, and cash-on-cash return are separate investment metrics.
Example: what is the rental yield for 1,000 per month on a 180,000 property?
If rent is 1,000 per month, vacancy is 5%, annual operating expenses are 3,712, and the property price is 180,000, the calculator gives annual gross rent of 12,000, gross effective income of about 11,400, NOI of about 7,688, gross yield of about 6.67%, and net rental yield / cap rate of about 4.27%.
Should I use purchase price or current property value?
Use purchase price when you want to judge the deal you are buying into. Use current property value when you want to assess how efficiently the property performs today compared with what the asset is worth now. Many investors track both.
Can Airbnb or short-term rental owners use this calculator?
Yes. Airbnb hosts and other short-term rental owners can use it as a quick screening tool by entering their expected average rent, vacancy, and operating costs to see whether the property still produces an acceptable net yield, monthly cash flow before financing, and payback period. The result is only as good as the assumptions, so seasonal demand, cleaning turnover, platform fees, furnishing, and local regulation should be reflected in the expense and vacancy inputs.
What is a good rental yield?
There is no universal answer. A “good” rental yield depends on location, property type, vacancy risk, operating costs, financing terms, and expected appreciation. Higher yield often comes with higher risk, weaker tenant demand, or more management effort.
