Iob Jewel Loan Interest Rate Calculator

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Rental Yield Calculator

Calculate the gross and net investment return on your rental property.

Insurance, taxes, maintenance, etc.
Gross Yield
0.00%
Net Yield
0.00%
Annual Net Cash
$0
function calculateRentalYield() { var price = parseFloat(document.getElementById('ry_purchasePrice').value); var monthlyRent = parseFloat(document.getElementById('ry_monthlyRent').value); var annualExpenses = parseFloat(document.getElementById('ry_annualExpenses').value); var occupancy = parseFloat(document.getElementById('ry_occupancyRate').value) / 100; if (price > 0 && monthlyRent >= 0) { var annualRent = monthlyRent * 12; var adjustedAnnualRent = annualRent * occupancy; var grossYield = (annualRent / price) * 100; var netYield = ((adjustedAnnualRent – annualExpenses) / price) * 100; var annualNetCash = adjustedAnnualRent – annualExpenses; document.getElementById('ry_grossYield').innerText = grossYield.toFixed(2) + '%'; document.getElementById('ry_netYield').innerText = netYield.toFixed(2) + '%'; document.getElementById('ry_annualCash').innerText = '$' + Math.round(annualNetCash).toLocaleString(); document.getElementById('ry_results').style.display = 'block'; } else { alert('Please enter valid numerical values. Purchase price must be greater than zero.'); } }

How to Use the Rental Yield Calculator

This rental yield calculator is designed for real estate investors to quickly determine the profitability of a potential investment property. Understanding your yield is critical before signing any purchase agreement.

What is Gross Rental Yield?

Gross rental yield is the simplest calculation for property returns. It is calculated by taking the total annual rent and dividing it by the property purchase price. It does not account for maintenance, taxes, or vacancies.

Formula: (Annual Rent / Purchase Price) x 100

What is Net Rental Yield?

Net rental yield is a more accurate representation of your actual return. It takes your total income, subtracts all annual expenses (management fees, repairs, property taxes, insurance), and accounts for potential vacancy periods (occupancy rate).

Investment Example

  • Property Price: $400,000
  • Monthly Rent: $2,200 ($26,400 annually)
  • Annual Expenses: $4,500 (Taxes, Insurance, HOA)
  • Result: Gross Yield of 6.60% and a Net Yield of 5.48%.

What is a Good Rental Yield?

While "good" varies by location, most investors target a gross yield of 5-8% in stable urban markets. Higher yields (8%+) are often found in emerging markets or areas with higher risk profiles, while lower yields (2-4%) are common in high-appreciation areas like San Francisco or London.

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