Rental Yield Calculator
Calculate the gross rental yield of a property to evaluate its income potential as an investment.
Rental Yield Calculator
Calculate the gross rental yield of a property to evaluate its income potential as an investment.
Real-World Examples
Property value: $300,000, monthly rent: $2,000
Gross yield: 8.00%
Property value: $450,000, monthly rent: $2,400
Gross yield: 6.40%
Property value: $600,000, monthly rent: $4,500
Gross yield: 9.00%
Common Mistakes to Avoid
Using monthly rent instead of annual rent
Fix: Rental yield is always based on annual rent. Multiply monthly rent by 12 before dividing by the property value.
Confusing gross yield with net yield
Fix: Gross yield ignores expenses. Net yield subtracts taxes, insurance, maintenance, management fees, and vacancy losses, giving a more realistic return.
Forgetting to include vacancy in real-world planning
Fix: Gross yield assumes 100% occupancy. Realistically, budget for 1-2 months of vacancy per year when evaluating a deal.