Before mortgage and tax
Yield measures the property itself, so mortgage interest and income tax aren't included. Use the loan and ROI calculators to see the return on your own money.
Work out the gross and net rental yield of a buy-to-let or investment property.
Net rental yield
4.40%
$13,632.00 a year after costs
Calculation
Net yield = (rent collected − running costs) ÷ (price + buying costs) × 100
Before mortgage interest and tax. Gross yields of 5–8% are often quoted as reasonable, but it varies a lot by city.
Last reviewed by the OnlineToolPro team
Shows how much a rental property earns compared with what it costs to buy. Gross yield uses the rent alone; net yield subtracts running costs and time empty, and includes buying costs like stamp duty.
How it works
3 simple steps. No experience needed.
Good to know
Yield measures the property itself, so mortgage interest and income tax aren't included. Use the loan and ROI calculators to see the return on your own money.
FAQ
Gross yields of about 5–8% are often considered reasonable, but it depends heavily on the city and how much the property is expected to grow in value.
Gross is yearly rent ÷ price. Net takes off running costs and empty periods and adds buying costs to the price — it's the more realistic number.
Step-by-step help for getting more out of the rental yield calculator.
Other tools you might find useful next.
Compare the real cost of renting and buying over the years you plan to stay.
Calculate return on investment, the gain or loss, and the yearly (annualized) return.
Estimate your monthly mortgage payment with taxes, insurance and HOA fees.
Loans, mortgages, pay, saving and tax — worked out in seconds. 18 free tools.