Net Rental Yield Calculator

Net yield shows how much of the headline gross yield is left after running costs, so two rentals at different prices and rents can be compared on the same footing. Enter the property value, monthly rent, vacancy rate, yearly maintenance and property tax, and a management fee as either a percentage of collected rent or a fixed monthly amount.

At the defaults, a $300,000 property let at $2,000 a month brings $24,000 a year, an 8.00% gross yield. A 5% vacancy allowance removes $1,200, management at 8% of the remaining $22,800 costs $1,824, and with $3,000 of maintenance and $3,000 of tax the net income is $14,976: a 4.99% net yield. A $250,000 home at $1,650 a month with 6% vacancy, $2,500 maintenance, $150 a month for management and $2,800 tax nets $11,512, which is 7.92% gross and 4.60% net.

gross yield = rent × 12 ÷ value × 100

net yield = (rent × 12 × (1 − vacancy%) − management − maintenance − tax) ÷ value × 100

A percentage management fee is charged on rent after vacancy; a fixed fee is the monthly amount × 12. Yields are shown to two decimals. The 5-, 10- and 20-year views multiply one year's net income by the number of years and divide by today's value, so they assume flat rent, flat costs and an unchanged property price.

The yield is measured against the property value, not the cash you put in, so mortgage interest, the deposit, purchase costs, letting fees and income tax are outside it. Add insurance or HOA fees to the maintenance figure if you want them counted. Amounts are labelled in dollars, but the arithmetic works in any currency. A net yield above 50% shows a warning, and expenses larger than the income make the result negative.