Rental Yield Calculator Measure Your Property's Rental Return
Estimate the annual rental yield of a property using its purchase price and rental income. Compare the potential rental return with your property investment amount before making an investment decision.
Calculate your property's rental yield
Enter the property purchase price, monthly rent and annual property expenses to estimate gross rental yield, net rental income and net rental yield.
Enter Property Details
Use your actual property figures for a more meaningful investment estimate.
Your Rental Return Estimate
Your result will appear here after you enter your property figures.
No property price, rent or expense data has been pre-filled.
Estimated annual net rental income as a percentage of property price
The estimate is for investment planning and does not represent a guaranteed property return.
Rental Income Breakdown
Property Return Snapshot
What is rental yield?
Rental yield measures the rental income generated by a property relative to the amount invested in purchasing it. It is commonly used by property investors to compare rental income potential across different properties.
Gross rental yield looks at rental income before recurring property expenses. Net rental yield considers relevant recurring expenses and therefore gives a more detailed view of the income retained from the property.
Rental yield should be considered alongside property appreciation, vacancy, financing costs, taxes, maintenance and other investment factors.
What affects your property's rental return?
Rental income is influenced by several factors beyond the monthly rent quoted by a tenant.
Monthly Rental Income
Higher sustainable rent can increase the annual income generated by the property and potentially improve rental yield.
Property Purchase Price
The purchase price forms the base against which rental income is compared when calculating yield.
Vacancy
Periods without a tenant can reduce the actual annual rental income received by the property owner.
Property Expenses
Maintenance, property tax and other recurring expenses can reduce the income retained by the owner.
Location
Local rental demand, connectivity, employment hubs and amenities can influence achievable rent and occupancy.
Property Appreciation
Rental yield does not capture changes in property value, so capital appreciation should be considered separately.
Don't judge an investment only by its advertised rent
Compare similar properties in the same locality instead of relying only on an advertised rental figure.
A property may not remain occupied throughout the entire year, especially during tenant turnover.
Account for maintenance, property tax, society charges and other costs that reduce net rental income.
If the property is financed, loan interest and other borrowing costs can materially affect your overall investment return.
Four checks before investing for rental income
A strong rental property decision should consider income potential, expenses and the long-term characteristics of the location.
Research Local Rents
Compare actual rents for similar properties in the same neighbourhood and property segment.
Estimate Occupancy
Consider realistic tenant demand and possible vacancy between rental agreements.
Calculate Expenses
Include recurring maintenance, taxes, repairs and other costs before estimating net rental return.
Compare Alternatives
Compare rental yield with other properties and consider appreciation, liquidity and risk before investing.
Gross rental yield is not the same as your actual rental return
Gross rental yield compares annual rental income with the property's purchase price without deducting recurring expenses.
Net rental yield goes a step further by accounting for eligible recurring property expenses. It can therefore provide a more realistic view of the income generated by the property after those expenses.
Neither measure alone tells the complete investment story. Financing costs, taxes, vacancy, property appreciation and transaction costs can also influence your final return.
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Rental Yield FAQs
Simple answers to common questions about rental yield, rental income and property investment returns.
Rental Yield Calculator FAQs
Rental yield is a measure of rental income generated by a property relative to the property's purchase price. It is commonly expressed as a percentage.
Gross rental yield is generally calculated by dividing annual rental income by the property purchase price and multiplying the result by 100.
Net rental yield considers relevant recurring property expenses before comparing the resulting annual rental income with the property's purchase price.
No. Rental yield measures rental income relative to the property investment. Changes in property value represent a separate potential source of return.
Yes. If a property remains vacant for part of the year, the actual rent received can be lower than the theoretical annual rent based on twelve months of occupancy.
Depending on the property, recurring costs may include maintenance, property taxes, society charges, repairs and other ongoing expenses.
Not necessarily. Yield should be considered alongside location, tenant demand, vacancy risk, property quality, appreciation potential, financing costs, liquidity and other investment factors.
No. The calculator is an educational planning tool. It does not guarantee rental income or future investment returns and should not be treated as personalised investment advice.
Know the rental return before buying an investment property
Enter your actual property price, rent and expenses to estimate gross and net rental yield.
This rental yield calculator is provided for general educational and property investment planning purposes only. The results are estimates based on the information entered by the user and do not guarantee future rental income, occupancy, property appreciation or investment returns. Actual returns may be affected by vacancy, maintenance, property taxes, financing costs, taxes, transaction costs, market conditions and other factors. Consider independent professional advice before making an investment decision.