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Rental Yield Calculator

Calculate gross and net rental yield and cap rate for a rental property from its price, rent, running costs and vacancy. Free buy-to-let calculator.

Net rental yield (cap rate)
5.51%
Gross rental yield
7.2%
Yearly rent
21,600
Net operating income
16,520
Monthly net income
1,377
Price-to-rent ratio
13.9

How well does a rental property pay?

Rental yield is the yearly rent as a percentage of the property's price. Gross yield uses the full rent; net yield (the cap rate when the property is bought outright) subtracts running costs and empty months. A $300,000 property renting for $1,800 a month has a 7.2% gross yield. After $4,000 of yearly costs and 5% vacancy, the net yield is 5.51%. Yields don't include mortgage costs or price growth; use them to compare properties on the same basis.

How to use it

  1. 1

    Enter the price and rent

    Purchase price and monthly rent.

  2. 2

    Add costs and vacancy

    Yearly costs and the share of the year it's empty.

  3. 3

    Compare yields

    Gross yield, net yield (cap rate) and net income.

Frequently asked questions

What is a good rental yield?

It depends on the market. 5–8% gross is common; city centres often yield less but grow faster in value.

Cap rate vs net yield?

Both are net operating income ÷ property value. Cap rate is the US term.

Does this include the mortgage?

No. Yields ignore financing. For return on your cash, divide net income after mortgage payments by the cash you put in.

Is my data stored?

No. Nothing leaves your browser.

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