Salary Calculator Texas

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Rental Yield Calculator

Investment Results

Gross Rental Yield

0%

Net Rental Yield

0%

Annual Rental Income

$0

Annual Cash Flow (Net)

$0

function calculateRentalYield() { var price = parseFloat(document.getElementById('propertyPrice').value); var monthlyRent = parseFloat(document.getElementById('monthlyRent').value); var expenses = parseFloat(document.getElementById('annualExpenses').value) || 0; var resultBox = document.getElementById('yieldResultBox'); if (isNaN(price) || isNaN(monthlyRent) || price <= 0) { alert('Please enter valid numbers for price and monthly rent.'); return; } var annualRent = monthlyRent * 12; var grossYield = (annualRent / price) * 100; var netIncome = annualRent – expenses; var netYield = (netIncome / price) * 100; document.getElementById('grossYieldResult').innerText = grossYield.toFixed(2) + '%'; document.getElementById('netYieldResult').innerText = netYield.toFixed(2) + '%'; document.getElementById('annualIncomeResult').innerText = '$' + annualRent.toLocaleString(); document.getElementById('netCashFlowResult').innerText = '$' + netIncome.toLocaleString(); resultBox.style.display = 'block'; }

Understanding Rental Yield for Real Estate Investing

Calculating rental yield is a critical first step for real estate investors evaluating a potential property. It allows you to compare different investment opportunities and determine the return on investment (ROI) relative to the purchase price.

What is Gross Rental Yield?

Gross rental yield is the return on an investment property before any expenses, taxes, or maintenance costs are deducted. It is expressed as a percentage of the property's purchase price or current market value.

Formula: (Annual Rent / Purchase Price) x 100

What is Net Rental Yield?

Net rental yield is a more accurate representation of your actual earnings. It takes into account all the costs associated with owning and managing the property, such as:

  • Property management fees
  • Insurance premiums
  • Property taxes
  • Maintenance and repairs
  • Strata/HOA fees
  • Vacancy allowance

Formula: ([Annual Rent – Annual Expenses] / Purchase Price) x 100

Example Calculation

Suppose you purchase a condo for $300,000. You rent it out for $1,800 per month, and your annual expenses (tax, insurance, repairs) total $4,000.

Metric Value
Annual Rent $21,600
Gross Yield 7.20%
Net Income $17,600
Net Yield 5.87%

What is a Good Rental Yield?

A "good" yield varies by location and property type. In major metropolitan areas with high capital growth potential, yields might be lower (3-5%). In regional areas or emerging markets, investors often look for higher yields (6-10%) to compensate for lower capital appreciation expectations.

Note: This calculator does not account for mortgage interest payments or capital gains tax. For a full financial analysis, it is recommended to speak with a financial advisor.

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