Rental Yield Calculator
Enter rental income, NOI, and property value below to instantly get gross and net rental yield.
What Is Rental Yield?
Rental yield expresses a property's rental income as a percentage of its value. Gross yield uses the full rental income; net yield swaps in NOI, so it already accounts for real operating expenses.
Worked example
A $400,000 property brings in $48,000/year in gross rent, with $31,200/year NOI after expenses.
Gross Rental Yield = $48,000 ÷ $400,000 = 12.0%
Net Rental Yield = $31,200 ÷ $400,000 = 7.8% -- the real, expense-adjusted figure, 4.2 points lower than gross.
Common mistake
Comparing a gross yield quoted by a listing site against a net yield you calculated yourself for another property. The two aren't the same measurement -- always check which basis a quoted yield uses before comparing it to your own numbers.
Keep going
- Rental yield and cap rate are close cousins -- yield uses gross rental income over price, cap rate uses NOI over price or value. The cap rate calculator shows the expense-adjusted version. Cap Rate Calculator
- Rental yield and GRM are inverses of the same relationship between price and rent; the GRM calculator expresses it as a multiplier instead of a percentage. Gross Rent Multiplier Calculator
Frequently Asked Questions
What's the difference between gross and net rental yield?
Gross rental yield divides annual rental income by property value, ignoring expenses entirely. Net rental yield uses NOI instead of gross income, so it's already adjusted for real operating costs -- always lower than gross yield, and a more honest comparison between properties with different expense loads.
How is rental yield different from cap rate?
Net rental yield and cap rate are the same calculation -- NOI divided by property value. Gross rental yield is the looser, expense-blind version some listings quote instead, which is why it's worth checking whether a quoted "yield" is gross or net before comparing two properties.
What's a good rental yield?
It depends heavily on market and property type, the same way cap rate does -- high-cost, high-demand markets typically show lower yields, and higher-yield markets often carry more risk or slower appreciation. There's no single target number that applies everywhere.
Should I use purchase price or current value for yield?
Current market value is the standard basis, matching cap rate's convention -- using purchase price only makes sense at the moment you buy, before the property's value has had a chance to move.
Why would gross and net yield be very close together?
A property with very low operating expenses relative to its rent -- newer construction, low property tax, self-managed with few repairs -- will show gross and net yield close together. A wide gap usually points to higher expenses eating into the real return.
This is a neutral calculation based on the numbers you enter -- not investment advice.
Related Calculators
- Cap Rate Calculator — Return Metrics
- Cash-on-Cash Return Calculator — Return Metrics
- Real Estate ROI Calculator — Return Metrics
- NOI Calculator — Income & Cash Flow