Rental Yield Calculator

Gross yield of 6–10% is generally considered good for residential rentals. Net yield of 4–6% after expenses is healthy. Below 4% net and you may be cash-flow negative. Markets with lower yields often have higher appreciation potential as a trade-off.

Gross yield = (Annual Rent ÷ Property Price) × 100. It ignores all costs. Net yield subtracts vacancy, property taxes, insurance, maintenance, and management fees. Net yield is a much more accurate picture of actual returns.

Cap rate (capitalization rate) = Net Operating Income ÷ Property Value × 100. It measures return assuming no mortgage. A 5% cap rate means the property generates 5% of its value in NOI per year. Used to compare properties regardless of financing.

Cash-on-cash = Annual Cash Flow ÷ Cash Invested × 100. It measures return on your actual cash invested (down payment + closing costs), accounting for mortgage payments. A 6–10% cash-on-cash return is generally considered a solid investment.