Skip to main content
Simple Calculators

Rental Yield Calculator

Calculate gross yield, net yield, and break-even occupancy for any rental property. Find out the monthly rent needed to hit your target yield.

Property Details

Gross annual rent collected

Taxes, insurance, maintenance, management

Used to calculate required rent

Related calculators

All real estate

Quick summary

Rental yield measures how much rental income your property generates relative to its value. Gross yield ignores expenses and gives a simple comparison benchmark. Net yield accounts for all operating costs and shows your actual return. A good net yield typically falls between 4–8% depending on the market.

Reviewed by Simple Calculators TeamLast reviewed

How to use this calculator

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. Check the inputs, units, dates, and limitations before saving or sharing the result.

Rental Yield Formulas

Gross Rental Yield

Gross Yield=Annual Rental IncomeProperty Value×100\text{Gross Yield} = \frac{\text{Annual Rental Income}}{\text{Property Value}} \times 100
Annual Rental Income
Total gross rent collected per year
Property Value
Current market value or purchase price

Worked example

$24,000 annual rent, $300,000 property

Given
Annual Rent = $24,000
Value = $300,000
Calculation
24,000300,000×100\frac{24{,}000}{300{,}000} \times 100
Result
8% gross yield

Net Rental Yield

Net Yield=Annual Rent−Annual ExpensesProperty Value×100\text{Net Yield} = \frac{\text{Annual Rent} - \text{Annual Expenses}}{\text{Property Value}} \times 100
Annual Expenses
All operating costs: taxes, insurance, maintenance, management fees

Worked example

$24,000 rent, $6,000 expenses, $300,000 property

Given
Rent = $24,000
Expenses = $6,000
Value = $300,000
Calculation
24,000−6,000300,000×100\frac{24{,}000 - 6{,}000}{300{,}000} \times 100
Result
6% net yield

Break-Even Occupancy

Break-Even Occupancy=Annual ExpensesAnnual Rent×100\text{Break-Even Occupancy} = \frac{\text{Annual Expenses}}{\text{Annual Rent}} \times 100
Break-Even Occupancy
Minimum % occupancy to cover all expenses

Worked example

$6,000 expenses, $24,000 potential rent

Given
Expenses = $6,000
Potential Rent = $24,000
Calculation
6,00024,000×100\frac{6{,}000}{24{,}000} \times 100
Result
25% minimum occupancy needed

Frequently asked questions

What is a good rental yield?

Gross yields of 6–10% are generally considered good. Net yields of 4–7% are typical for well-managed properties. Prime city locations often have lower yields (3–5% gross) but may offer better capital appreciation. Higher-yield properties (8%+) often come with higher risk or maintenance needs.

What's the difference between gross and net rental yield?

Gross yield uses your total rent income before any expenses. Net yield subtracts all operating costs (property tax, insurance, maintenance, property management fees). Net yield is the more accurate measure of your actual return — gross yield overstates income.

What expenses should I include in net yield calculations?

Include: property taxes, landlord insurance, routine maintenance and repairs (budget 1–2% of value/year), property management fees (8–12% of rent if applicable), HOA fees, and any other regular operating costs. Exclude mortgage payments — yield is an operating metric, not a cash flow metric.

How do I use the break-even occupancy rate?

Break-even occupancy shows the minimum percentage of time your property must be rented to cover all expenses. If your break-even is 30%, you break even with just 3.6 months of occupancy per year — leaving a large safety margin. If it's 90%, you have very little room for vacancies.

Key terms

Gross Yield
Annual rental income divided by property value — ignores expenses, used for quick comparisons
Net Yield
Annual rental income minus expenses divided by property value — the actual operating return
Break-Even Occupancy
Minimum occupancy rate needed for rental income to cover all annual expenses
Expense Ratio
Annual expenses as a percentage of gross rent — lower is better for the investor

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.