When to use this calculator
Use gross rental yield for an initial comparison of property income relative to purchase price, then examine actual costs separately.
Explore the mortgage & property calculators for other questions in this topic. For a related calculation, use the Retirement Calculator: Project retirement savings, inflation-adjusted spending needs and a modelled funding gap.
PUTTING IT INTO PRACTICE
Rental Yield: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Monthly rent | 1,000 |
| Property price | 200,000 |
| Result | 6 % |
- Check the input labels and enter the example values above.
- Apply the relationship: Gross yield (%) = monthly rent × 12/property price × 100.
- The result is 6 %, rounded for display.
How to interpret your result
Gross yield excludes vacancies, maintenance, financing costs, taxes and purchase fees.
Separate property price, deposit and financed amount. Gross rental yield excludes operating expenses, whereas net yield depends on the costs you include. Equity is an estimated asset value rather than immediately available cash.
Frequently asked questions
Are rental yield and property return the same?
No. Yield measures rental income relative to a property value or cost. Total return can also include changes in value and transaction costs.
When is the rental yield calculator useful?
Use gross rental yield for an initial comparison of property income relative to purchase price, then examine actual costs separately.
How do I use the rental yield calculator?
Enter monthly rent, property price. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Gross yield (%) = monthly rent × 12/property price × 100.
What should I check before using the result?
Gross yield excludes vacancies, maintenance, financing costs, taxes and purchase fees.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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