Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: Net Rental Yield, Gross Rental Yield, Annual Net Income, Monthly Net Income.
Updated 5 June 2026 · Transparent assumptions
$18,000 of rent becomes $11,100 of income once costs and vacancy are taken
Annual rent of $18,000 on a $300,000 property is a 6% gross yield. A 5% vacancy allowance removes $900 and $6,000 of expenses removes the rest, leaving $11,100 — a net yield of 3.7%. Almost 40% of the gross yield disappears before it reaches you.
Gross yield is the figure quoted in listings and in conversation; net yield is the one that pays you. The gap varies enormously by property and by jurisdiction, which is why comparing two properties on gross yield alone routinely picks the wrong one — a higher gross yield with heavier costs can net less than a lower one that runs cheaply.
Everything except the mortgage
Operating expenses should cover property tax, insurance, management, repairs, service charges, and any utility the landlord pays. The mortgage is excluded, because yield measures the property rather than the deal — the same building has the same net yield whether bought with cash or borrowed.
The $6,000 in the default is 33% of gross rent, which is at the optimistic end. Real figures commonly reach 35-50% once management and honest maintenance reserves are included, and in jurisdictions with high property taxes or service charges they go higher still. Understating this line is the most common way a rental looks better on paper than in the bank.
It compares income; it says nothing about capital growth
Yield captures one half of a property return. Markets with high yields often have modest capital growth, and expensive metropolitan markets frequently run yields near 3% while relying on appreciation. Ranking purely by yield systematically selects for the first kind, which may or may not be what you want.
It is also the right basis for comparing a property against a bond or a savings rate, provided the comparison is net yield against those alternatives after tax — and provided you account for the fact that a property is illiquid, undiversified, and requires work that a bond does not.
Current rent, today\u2019s costs, and a price you can actually buy at
The purchase price should include acquisition costs — stamp duty or transfer tax, legal fees, survey — because yield measured against the headline price overstates the return on what you actually spent. In markets with high transaction taxes this alone can move net yield by half a point.
Neither rent nor expenses grow here, so this is a first-year figure. Over time rent typically rises with inflation while a fixed mortgage does not, which improves the leveraged return but not the unleveraged yield shown on this page.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Cap RateCapitalisation rate from net operating income and property value, with the implied value at any target cap rate.
Gross Rent MultiplierGRM from price and rent, with the value the market multiple implies and the gap against your price.
InvestmentProject lump-sum and regular-contribution growth, plan a goal, and solve future vs present value, with fees and inflation.
Regular InvestmentProject how regular monthly contributions grow over time — SIP-style investing, dollar-cost averaging, inflation-adjusted value, and long-term goals.
Returns are assumptions, not guarantees. Actual results may vary because of market performance, taxes, fees, inflation, and timing. This is an educational projection, not investment advice.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Tested that net yield never exceeds gross yield and that the gap is exactly expenses plus vacancy over the price.
Add this calculator to your site
Responsive embed — and private: nothing your visitors type leaves their browser.