Rental Yield Calculator
Gross rental yield of a property from its price and monthly rent.
Result
Annual rent
1,800,000
Gross yield (%)
6.00
How it works
Gross rental yield turns a property into a comparable percentage: annual rent divided by purchase price, times 100. A flat bought at 200,000 renting for 900 a month brings 10,800 a year — a gross yield of 5.4%. It exists to make properties comparable at a glance, the way unit price compares packages. A cheap flat with modest rent can easily beat an expensive one with impressive rent, and the percentage is what reveals it before you visit anything. But gross is the optimistic number. It assumes twelve months of rent, no unpaid months, no repairs and no taxes. Net yield subtracts property tax, management fees, insurance, maintenance, condo charges and acquisition costs — and typically lands two to three points below the gross figure. Use gross to shortlist, never to decide.
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Frequently asked questions
What is a good rental yield?
It varies by market, but 5–8% gross is often considered solid. Net yield (after charges) is lower.
Is this gross or net?
Gross — it excludes charges, taxes and vacancy. Net yield is always lower.
Should I account for vacancy between tenants?
Yes — gross yield assumes twelve months of rent, which rarely happens. Budget at least a few weeks of vacancy per year plus a reserve for unpaid rent; both come straight out of the return.
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