Finance

Rental Yield Calculator — Real Estate ROI & Cap Rate Calculator

Calculate gross and net rental yield, capitalization rate (cap rate), and cash-on-cash returns for real estate investment properties.

How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🌱 When you save money in a bank, the bank gives you a small gift (called interest) for keeping it there. Then next year, you get a gift on your gift too! This tool shows how much your money will grow over time.

📌 Direct Answer & Summary

Rental yield measures the cash return on a real estate investment property. Gross rental yield calculates return relative to purchase price before expenses, while Net rental yield (Cap Rate) calculates return after operational expenses.

Yield Metrics Summary

Annual Rent
Gross Yield
Net Cap Rate
Cash-on-Cash

What is Rental Yield Calculator — Real Estate ROI & Cap Rate Calculator?

Rental yield measures the cash return on a real estate investment property. Gross rental yield calculates return relative to purchase price before expenses, while Net rental yield (Cap Rate) calculates return after operational expenses.

How to use it

  1. 1️⃣ Enter the purchase price of the property.
  2. 2️⃣ Enter the estimated monthly rental income.
  3. 3️⃣ Enter annual operating expenses (maintenance, taxes, insurance).
  4. 4️⃣ Input down payment and mortgage details to calculate cash-on-cash return (optional).
  5. 5️⃣ The tool updates yields and Cap rate values instantly.

Formula

Gross Yield = (Annual Rent / Purchase Price) * 100. Net Yield (Cap Rate) = (Net Operating Income / Purchase Price) * 100.

💡 See it in action — a real example

A property bought for $200,000 renting at $1,500/month with $4,000 in annual expenses: Gross Yield = (18,000 / 200,000) * 100 = 9.00%. Net Yield = ((18,000 - 4,000) / 200,000) * 100 = 7.00%.

❓ Common questions

What is a good rental yield?
A good rental yield typically ranges from 5% to 8%. However, this depends heavily on local market factors, interest rates, and property appreciation potential.

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