Rental Yield Calculator

Calculate your property's rental yield and payback period

Total Cost of Property

Expected Monthly Rent

Expected Annual Expenses

Expected Vacancy Rate

%

Bank Interest on Rent?

Rental Yield Calculator helps property investors quickly evaluate the profitability of rental properties. Simply enter your property cost, expected monthly rent, annual expenses, and vacancy rate to get instant insights on your investment returns.

This tool calculates both gross and net rental yields, along with the payback period, helping you make informed investment decisions and compare different properties effectively.

Understanding Rental Yield

Rental yield is a key metric for property investors, showing the annual return on investment as a percentage of the property's total cost.

Gross Rental Yield Formula

Gross Rental Yield = (Annual Rent / Total Property Cost) × 100

Net Rental Yield Formula

Net Rental Yield = ((Annual Rent - Annual Expenses) / Total Property Cost) × 100

Key Components

  • Total Property Cost: The complete purchase price including all buying costs
  • Monthly Rent: Expected rental income per month
  • Annual Expenses: Maintenance, taxes, insurance, and other yearly costs
  • Vacancy Rate: Percentage of time the property might remain unoccupied
  • Payback Period: Years needed to recover your investment through rental income

Why Use This Calculator

Understanding rental yield helps you compare investment opportunities, set competitive rental prices, and plan your long-term financial strategy. A higher yield generally indicates a better return on your investment.

Frequently Asked Questions

What is rental yield?

Rental yield is the annual rental income expressed as a percentage of the property's total cost. It helps measure the return on investment for rental properties.

What is the difference between gross and net rental yield?

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What is a good rental yield?

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How is payback period calculated?

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Should I consider vacancy rate?

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