Real Estate Investment Yield Calculator (Gross & Net)
Enter a property's price and its annual rental income and expenses to instantly calculate the gross yield and net yield. Add purchase costs for a yield estimate closer to reality.
Input
$
$
Total yearly income at full occupancy (e.g. monthly rent × 12)
$
Management fees, repair reserves, property tax, insurance, etc. (yearly)
$
Agent fees, registration, acquisition tax, etc. Blank means 0
Result
Gross yield
6.00%
Net yield
4.76%
Annual net income (rent − expenses)
$1,000,000
Total investment (price + costs)
$21,000,000
How it works
- Gross yield is calculated as "annual rental income ÷ property price × 100." It ignores expenses and is the figure usually quoted in property listings.
- Net yield is calculated as "(annual rental income − annual expenses) ÷ (property price + purchase costs) × 100." By including running costs (management fees, property tax, etc.) and upfront purchase costs, it gives a figure closer to reality than the gross yield.
- Enter the annual rental income assuming full occupancy (e.g. monthly rent × 12). Vacancy and rent declines are not considered, so your actual yield may be lower.
- Under annual expenses, enter the yearly total of management fees, repair reserves, property tax, insurance, and management commissions. Under purchase costs, enter agent fees, registration costs, acquisition tax, and loan fees. Leaving purchase costs blank (0) makes the net-yield denominator equal to the property price.
- This tool does not calculate cash-flow yield net of loan repayments (principal and interest) or income/residence taxes. Check the cash flow separately if you use financing.
- The yields shown are estimates only. Make investment decisions at your own risk, accounting for vacancy risk, interest rates, future repairs, and resale value. Consult a real estate or tax professional as needed.
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Real Estate Investment Yield Calculator (Gross & Net)