Rental Yield Calculator
Calculate gross yield, net yield, and cash yield for any investment property.
Understanding Rental Yield Benchmarks
What is Gross Rental Yield?
Gross rental yield is the simplest measure of a property's income potential. It equals annual rent divided by property value, expressed as a percentage. It ignores all costs, making it useful for quick comparisons between properties.
What is Net Rental Yield?
Net rental yield subtracts your annual operating expenses (insurance, property tax, maintenance, management fees) from annual rent before dividing by property value. It gives a more accurate picture of real returns.
What is Cash Yield?
Cash yield (sometimes called cash-on-cash return) factors in your mortgage payments on top of expenses. It shows the actual cash return you receive on the money you've invested, accounting for leverage. Only relevant if you have a mortgage.
Benchmark Ratings
Below 4%: Below average — may be acceptable in high-appreciation markets like major city centers, but income alone is unlikely to cover costs.
4–6%: Average — typical for stable suburban markets. Covers costs with modest profit margin.
6–8%: Good — strong return, common in regional cities and landlord-friendly markets.
Above 8%: Excellent — high income return, often found in lower-cost areas or high-demand rental markets. Verify the property condition and local vacancy rates.