Rental Yield
Calculator

Gross rental yield divides annual rent by the property price, ignoring expenses. Net rental yield subtracts operating expenses (taxes, insurance, maintenance, management) from rental income first, giving a more realistic picture of actual return on the property price.

Gross yield is a fast way to compare many properties at a glance before doing detailed expense research, which is especially useful for early-stage screening across a large number of listings. It should be followed by a net yield or cash flow analysis before making a purchase decision.

Not necessarily — high-yield properties are often in higher-risk or slower-appreciating markets, while low-yield properties are frequently in stable, high-appreciation areas where investors accept lower income in exchange for long-term value growth. The 'right' yield depends on your investment strategy.

Net rental yield and cap rate are calculated the same way — net operating income divided by property value — so the two terms are often used interchangeably, though 'rental yield' is more common in residential and international contexts, while 'cap rate' is more common in U.S. commercial real estate.

Use current market value if you want to know your yield on today's opportunity cost of capital (what you could get by selling and reinvesting), but use original purchase price if you want to track the return relative to your original investment. Both are valid, but they answer different questions.