Gross rental yield calculator
Gross yield is a quick way to compare rental properties before any expenses are taken off.
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How to use it
- Enter property price, rent and rent period.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Annual rent = monthly rent x 12 when monthly is chosen. Gross yield = annual rent / property price x 100. Payback years = price / annual rent.
Example
Inputs: Property price = 1,000,000, Rent = 60,000, Rent period = Per year. Result: Gross yield: 6%; Annual rent: 60,000.00; Years of rent to repay the price: 16.7 years.
Limits and caveats
- Does not take off vacancy or expenses, so net yield is always lower.
- Payback years are rough and ignore rent changes over time.
Questions about this tool
What is a good rental yield?
It depends on the city and property type, so compare with similar homes in the same area.
Gross versus net yield?
Gross divides full rent by price. Net takes off vacancy and expenses and adds buying costs to the cost.
Monthly or annual rent?
Use whichever you know and pick the period from the list. The tool converts it to annual.