What Is a Rental Yield Calculator?

A rental yield calculator measures the annual return generated by a rental property as a percentage of its purchase price. It computes both gross yield (revenue only) and net yield (after all operating expenses), giving you the true performance picture of any investment property. This calculator also shows monthly cash flow, break-even occupancy, and 10-year cumulative projections.

Gross vs. Net Rental Yield

Gross Yield = (Annual Rent ÷ Property Value) × 100. Net Yield = (NOI ÷ Property Value) × 100. NOI = Effective Gross Income − Operating Expenses. The gap between gross and net yield is typically 2–4 percentage points, representing the cost of vacancy, property management, taxes, insurance, and maintenance.

Understanding Cash Flow

Positive cash flow = NOI exceeds debt service. Even a property with low yield can have positive cash flow with low leverage. Cash flow is the lifeline of buy-and-hold investing — it allows you to survive vacancies, repairs, and market downturns without selling at a loss. Target: positive cash flow even with 10–15% vacancy.

Key Benchmarks and Rules

The 1% Rule: monthly rent ≥ 1% of purchase price. The 50% Rule: assume expenses = 50% of gross rent. The 2% Rule (very aggressive): monthly rent ≥ 2% of price. These are screening rules only — always build a full cash flow model. Net yield above the mortgage rate indicates positive leverage.