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Rental Yield Calculator

Calculate gross and net rental yield for your investment properties

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Rental Yield Analysis Results

Gross Rental Yield
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Net Rental Yield
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Annual Cash Flow
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Monthly Cash Flow
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Property Value Yield
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Yield Comparison

How Rental Yield Calculation Works

This calculator helps you evaluate the return on investment for rental properties by calculating both gross and net rental yields.

Formulas used:

Gross Rental Yield = (Annual Rental Income / Purchase Price) × 100%

Net Rental Yield = [(Annual Rental Income - Annual Expenses) / Purchase Price] × 100%

The calculator also estimates your cash flow and can calculate yield based on current property value if provided. Rental yield is a key metric for comparing the profitability of different investment properties.

Remember that this calculation provides estimates only. For a comprehensive analysis, consider consulting with a real estate professional.

Frequently Asked Questions

What is a good rental yield?
Generally, a gross rental yield of 6-8% is considered good, but this varies by market. In high-cost areas, yields may be lower (4-5%), while in emerging markets, yields of 8-10% or more may be possible. Net yields are typically 1-3% lower than gross yields after accounting for expenses.
What's the difference between gross and net yield?
Gross yield calculates return based on rental income alone, while net yield factors in expenses like maintenance, property management, insurance, taxes, and vacancy costs. Net yield provides a more accurate picture of your actual return on investment.
Should I use purchase price or current value?
For evaluating investment performance, purchase price is typically used as it reflects your actual investment. However, calculating yield based on current value can help you understand whether it might be better to sell and reinvest elsewhere.
What expenses should I include for net yield?
Common expenses include property management fees (8-12% of rent), maintenance and repairs (1-2% of property value annually), property taxes, insurance, HOA fees, vacancy allowance (5-8% of rent), and capital expenditures for future repairs.

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