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Rental yield calculator: gross yield, net yield and cash flow

Purchase

Purchase taxes and closing costs (transfer tax, stamp duty, legal and lender fees) vary a lot by country, state and price. Enter the figure from your agent, lawyer or closing estimate.

Rent and expenses
Maximum price for a target yield

Income tax on rental profits is not calculated, nor tax on a gain when you sell: both depend on your country, your tax status and your situation. Ask a tax professional or accountant for an estimate.

Rough estimate only, not investment advice. Check rent, expenses, closing costs and loan terms for each property.

Check whether a rental property adds up

This rental yield calculator works as a simple rental property calculator: it shows the gross yield, the net yield after expenses, monthly cash flow with or without a mortgage, and how much you would top up each month. It also gives the maximum price for a target yield and an optional 10 to 25 year projection. Everything runs in your browser and nothing is sent anywhere.

How to use it

  1. Under "Purchase", enter the "Purchase price", the "Closing costs" (as "% of price" or as an amount), "Renovation" and "Furniture". Pick USD, GBP or EUR under "Currency".
  2. Under "Rent and expenses", enter the "Monthly rent", "Vacancy" (months per year or % of rent), non-recoverable fees such as HOA dues, property tax, landlord insurance, and management and maintenance as a percentage of rent collected.
  3. Tick "Finance with a mortgage" to get the monthly payment, cash flow and top-up.
  4. Set a "Target yield" to see the "Maximum purchase price", and tick "Projection over several years" for a year-by-year table. "Copy link to this calculation" saves all your figures in a shareable address.

Gross and net yield: the formulas

Gross yield = annual rent ÷ purchase price × 100. It is the quick figure for comparing listings. The tool also shows gross yield on the total cost (price, closing costs, renovation and furniture).

Net yield = (rent collected − annual expenses) ÷ total cost × 100. This is close to what investors call the cap rate when the property is bought without debt, and it is always before tax.

Example: a house at $250,000 with 3% closing costs ($7,500) and $12,500 of renovation, so a total cost of $270,000. Rented at $2,000 a month, it brings $24,000 a year: a gross yield of 9.60% on the price and 8.89% on the total cost. With 5% vacancy, rent collected is $22,800. Expenses are $3,000 property tax, $1,200 insurance, 8% management ($1,824) and 5% maintenance ($1,140): $7,164 in all. That leaves $15,636, a net yield of 5.79%, or $1,303 a month.

Expenses to plan for

List everything the owner pays: property tax, landlord insurance, HOA or service charges that tenants do not cover, a property manager's fee, and a maintenance reserve for repairs, appliances and turnover between tenants. Utilities you pay yourself also belong in the fees line.

Vacancy

Few homes stay let 12 months a year. Finding a tenant, cleaning and repainting between leases or a missed payment all cost rent. Many landlords allow 5 to 8% of the rent; check how long similar homes stay empty in your area. The tool removes vacancy from rent collected, not from gross yield.

Cash flow and the effect of a mortgage

Monthly cash flow = (rent collected − expenses) ÷ 12 − monthly loan payment. If it is negative, "Monthly top-up from your pocket" shows what you add each month.

In the example, with a $200,000 loan at 6.5% over 30 years, the payment is $1,264.14. Cash flow is $1,303.00 − $1,264.14 = $38.86 a month, or $466.32 a year. A loan does not change the property's yield, but it shrinks the money you put in ($70,000 here) and each payment repays part of the balance, which the projection table tracks year by year.

Maximum price for a target yield

To reach 10% gross with $2,000 a month: 24,000 ÷ 0.10 = $240,000 at most. With "net of expenses, on total cost", the tool also takes closing costs, renovation and expenses into account: for 6% net, the ceiling in the example is $240,873.

What the tool does not calculate

No tax is calculated: not income tax on rental profit, not depreciation, and not tax on a gain when you sell. Rules differ between countries and states and depend on your own situation. A tax professional or accountant can give you a reliable figure.

Other figures worth checking

Compare price per square foot (price ÷ area) and rent per square foot (rent ÷ area) with recent sales and listings nearby. Look at local rental demand: jobs, schools, transport and how fast similar homes rent. Some cities limit rent increases, which matters for the yearly increase you enter in the projection.

Frequently asked questions

What is the difference between gross and net rental yield?

Gross yield divides annual rent by the price, with no costs. Net yield takes off vacancy and expenses and divides by the full cost including closing costs. The gap is often 2 to 4 points.

Is this a cap rate calculator?

The net yield on total cost works like a cap rate: net operating income divided by what you paid. Some investors divide by the price alone; set closing costs and renovation to zero to get that version.

What is a good rental yield?

There is no universal figure. Higher yields often come with more vacancy or repair risk. Compare several properties in the same area with the same assumptions.

Is my data saved?

Only in your browser, so you find your figures on your next visit. A shared link carries the values in the address itself.