Calculate gross yield and net yield on your rental property. Net yield uses actual NOI, giving a more accurate picture than gross yield alone.
📍 Property Address (optional)
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InputsYour Numbers
Property
Purchase Price?
$
Monthly Rent?
$
Vacancy %?
%
Pro Forma
Pro Forma Monthly Rent?
$
Operating Expenses
Property Tax / mo?
$
Insurance / mo?
$
Maintenance %?
%
Management %?
%
HOA / mo?
$
As-Is AnalysisCurrent
Enter values to see results
Gross Yield
--
ann. rent / price
Net Yield
--
NOI / price
Annual NOI
--
after expenses
Expense Ratio
--
expenses / gross
Yield Calculation
Annual Gross Rent--
Vacancy Loss--
Annual EGI--
Annual Operating Expenses--
Annual NOI--
Gross Yield (rent/price)--
Net Yield (NOI/price)--
Pro FormaAfter Plan
Enter pro forma values
Pro Forma Gross Yield
--
vs as-is
Pro Forma Net Yield
--
vs as-is
Yield Improvement
--
net yield gain
NOI Increase
--
per year
Pro Forma vs As-Is
As-Is Net Yield--
Pro Forma Net Yield--
Net Yield Improvement--
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1
Enter Property Value and Rent
Price and monthly rent are the two key inputs. Gross yield = annual rent / price. Net yield adds in all operating expenses.
2
Enter All Operating Expenses
Net yield requires full expenses: tax, insurance, maintenance, management, HOA. This is what separates a real analysis from a back-of-envelope estimate.
3
Understand Gross vs Net
Gross yield ignores expenses and looks better. Net yield tells the truth. A property with 7% gross yield and 40% expense ratio has only 4.2% net yield.
4
Target Net Yield
4%+ net yield is generally the minimum target for most markets. 6%+ is strong. Below 3% typically means the property is priced as an appreciation play, not an income play.
5
Enter Pro Forma Rent
Model rent increases to see how yield improves. Every $100/mo rent increase on a $280K property adds 0.43% to gross yield.
6
Compare to Market Yields
Net yield and cap rate are essentially the same metric. Compare your net yield to local market cap rates to assess whether you are paying a fair price.
Rental yield measures the annual return from rental income as a percentage of property value. It is the real estate equivalent of a stock's dividend yield.
Gross yield = Annual Rent / Property Value. Simple but ignores operating costs. Net yield = Annual NOI / Property Value. Uses the same formula as cap rate -- they are effectively the same metric.
Use rental yield to quickly compare multiple properties or markets. A property yielding 7% gross vs another at 5% gross might be equivalent on a net basis if the 7% property has higher expenses. Always calculate net yield before making a decision.