Net rental yield calculator
Net yield is closer to what a rental property really puts in your pocket before financing and tax.
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How to use it
- Enter property price, buying costs, annual rent, vacancy rate and annual expenses (upkeep, service, management).
- 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
Net income = annual rent x (1 - vacancy) - annual expenses. Net yield = net income / (price + buying costs) x 100.
Example
Inputs: Property price = 1,000,000, Buying costs = 50,000, Annual rent = 70,000, Vacancy rate = 5 %, Annual expenses (upkeep, service, management) = 10,000. Result: Net yield: 5.38%; Net annual income: 56,500.00; Gross yield on price: 7%.
Limits and caveats
- Some investors divide by price alone without costs, so figures may differ from other sources.
- Excludes loan payments and income tax.
Questions about this tool
Which expenses should I take off?
Service charges, maintenance, management, insurance and any other fixed yearly fees on the unit.
What vacancy rate should I use?
Base it on how many months the unit usually sits empty. One month a year is about 8.33%.
Why add buying costs to the cost?
They are part of the money you actually paid to own the property, and leaving them out overstates the yield.