Calculate gross yield, net yield, cash flow, and cash-on-cash return for rental properties.
Optional: enter mortgage details for cash-on-cash return
Rental Yield Calculator is a free financial planning tool that helps you calculate gross yield, net yield, cash flow, and cash-on-cash return for rental properties with clear, visual results. Making informed financial decisions requires accurate numbers — this calculator provides them instantly without requiring any sign-up or personal information. Your financial data never leaves your browser.
Rental yield is the annual income from a rental property expressed as a percentage of its total value. It tells you the return you're getting from rent relative to what you paid for the property. Gross yield uses total rent vs purchase price. Net yield deducts operating expenses. It's one of the primary metrics investors use to compare rental properties and evaluate investment viability.
A gross rental yield above 7–8% is generally considered strong in most markets. 5–7% is typical and acceptable. Below 5% may be marginal unless you're banking on capital appreciation. Net yields are typically 1–3% lower than gross. In expensive cities (NYC, SF, London), yields of 3–5% gross are common due to high property prices. Always compare net yield after expenses to your financing cost to ensure positive cash flow.
Gross yield = (annual rent / property price) × 100 — ignores all expenses. Net yield = (annual rent − annual expenses) / property price × 100 — deducts operating costs like maintenance, insurance, property taxes, vacancy allowance, and management fees. Net yield gives a much more accurate picture of actual return. Cash-on-cash return goes further by comparing annual cash flow to your actual cash invested (down payment), which is most relevant for leveraged purchases.