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Calculation Machine

Rental Yield Calculator

Gross and net yield on a rental.

Reviewed by the Calculation Machine team · How we check our maths

Your values

ⓘ Live results

Results
Gross yield
8.4%
Net yield
6.13%
Annual rent
$25,200.00
Net operating income
$18,400.00
Cash-on-cash return
24.53%
Monthly net income
$1,533.33

Quick answer

Gross yield is annual rent over price; net yield subtracts running costs, and cash-on-cash measures return on the cash you actually invested.

The formula

Gross yield = Annual rent ÷ Price × 100

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Purchase price300000 $
  • Monthly rent2100 $
  • Annual running costs6800 $
  • Cash invested75000 $

Result

  • Gross yield8.4%
  • Net yield6.13%
  • Annual rent$25,200.00
  • Net operating income$18,400.00
  • Cash-on-cash return24.53%
  • Monthly net income$1,533.33

How to use the Rental Yield Calculator

  1. 1Enter the purchase price and monthly rent.
  2. 2Add annual costs: tax, insurance, management, maintenance.
  3. 3Enter the cash you put in for cash-on-cash return.

Frequently asked questions

What is a good rental yield?

5–8% gross in most US markets; below 4% relies on appreciation.

Should I include mortgage payments?

Not in net yield — include them only in cash flow and cash-on-cash calculations.

About this calculator