Inputs
Results
Gross Yield
7.54%
Net Yield
3.94%
ℹ️ Net yield below 4% — verify the numbers; cash flow may be negative after mortgage.
How to Use
- 1Enter the property purchase price and expected monthly rent.
- 2Set your vacancy rate — 5% (about 18 days/year) is a common estimate.
- 3Enter property management fee if using a manager, or 0% if self-managing.
- 4Use 1% of property value as a starting estimate for annual maintenance.
- 5Add property tax and insurance estimates for a realistic net yield.
Frequently Asked Questions
What is a good rental yield?+
A gross yield of 6–8% is generally considered good for residential rentals in the US. Net yield of 4–6% after expenses is strong. Below 3% net yield, the property may be cash flow negative.
What is the difference between gross and net yield?+
Gross yield is simply annual rent divided by property price. Net yield accounts for all expenses (vacancy, management, maintenance, taxes, insurance) and reflects your actual return.
Does rental yield include mortgage payments?+
No — rental yield calculates return on the property value, not on your equity. Use cash-on-cash return to measure return on your actual cash invested after financing.
What is the 1% rule?+
The 1% rule states that monthly rent should be at least 1% of the purchase price (e.g., $3,500/month on a $350,000 property). Properties meeting the 1% rule generally generate positive cash flow.
Should I include appreciation in rental yield?+
No — rental yield measures income return only. Total return on an investment property includes rental yield plus capital appreciation. In high-appreciation markets, investors often accept lower yields.
This calculator is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a qualified professional before making real estate or financial decisions.