Rental Yield Calculator
Use this calculator to estimate the Gross and Net Yield for a property
Annual Expenses
Gross Yield
4.40%
Net Yield
2.96%
Annual Rental Income
$28,600
Total Annual Expenses
$9,360
Net Annual Income
$19,240
Expense Breakdown
Understanding Rental Yields
Gross Yield
Annual rent divided by property value. Does not account for expenses.
Net Yield
Annual rent minus expenses, divided by property value. More accurate picture of returns.
Why gross and net yield both matter
Gross yield is a quick comparison tool, but net yield gives the more honest picture because it includes real holding costs. Two properties can have similar rent levels but very different net outcomes once expenses are included.
- Gross yield is useful for quick filtering when comparing options.
- Net yield is better for judging actual investment performance.
- Vacancy, management, and maintenance can materially change the result.
What this calculator does not include
Rental yield is only one measure. It does not automatically tell you whether a property is the right investment once finance costs, tax treatment, and long-term growth are considered.
- It does not include mortgage repayments or interest costs.
- It does not cover tax, depreciation, or accountant advice.
- It should be paired with cash-flow and capital-growth analysis for a fuller view.
Rental yield FAQs
What is the difference between gross and net rental yield?
Gross yield uses rent only, while net yield subtracts operating expenses first. Net yield is usually the more realistic measure of how a property is performing.
Is a higher rental yield always better?
Not always. A higher yield can be attractive, but the property still needs to be judged on location, tenant demand, maintenance risk, finance costs, and long-term strategy.
Should vacancy and management fees be included in yield calculations?
Yes. Leaving them out can make a property look stronger than it really is, especially if professional management or periodic vacancy is likely.
Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Actual loan terms, rates, and eligibility may vary. Please contact a Mortgage Lab adviser for personalised advice.
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