📊 Rental Yield Calculator

Calculate gross yield, net yield, cash-on-cash return, monthly cash flow, and price-to-rent ratio for any residential or commercial rental property.

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Rental Yield Analysis

Property purchase details, rent, and operating expenses

% of gross rent. Set 0 if self-managing.
HOA, landscaping, utilities, etc.

Rental Yield Results

Gross Yield
Net Yield
Monthly Cash Flow
Cash-on-Cash Return

Annual Income & Expense Breakdown

Gross Annual Rent
− Vacancy Loss
= Effective Gross Income
− Total Operating Expenses
= Net Operating Income (NOI)
− Annual Mortgage Payment
Annual Cash Flow
Price-to-Rent Ratio
Cap Rate (NOI / Price)

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Key Rental Yield Benchmarks

Gross Yield
✅ Good: >8%
⚠️ Average: 5–8%
❌ Low: <5%
Net Yield
✅ Good: >5%
⚠️ Average: 3–5%
❌ Low: <3%
Cash-on-Cash
✅ Good: >8%
⚠️ Average: 4–8%
❌ Low: <4%
Price/Rent Ratio
✅ Buy favor: <15
⚠️ Neutral: 15–20
❌ Rent favor: >20
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Frequently Asked Questions

What is the difference between gross and net yield? +
Gross yield = (annual rent / purchase price) × 100. It ignores all costs. Net yield = (NOI / purchase price) × 100, where NOI = rent minus all operating expenses (taxes, insurance, maintenance, management). Net yield is more accurate but requires knowing your actual expenses.
What is cash-on-cash return? +
Cash-on-cash return = annual pre-tax cash flow / total cash invested (down payment + closing costs). Unlike cap rate, it accounts for financing — so the same property will have a different CoC at 20% vs 25% down. A higher CoC means your cash is working harder.
What is the 1% rule? +
The 1% rule says monthly rent should be at least 1% of purchase price (e.g., $3,500/mo on a $350k property). It's a quick screening filter, not a full analysis. Markets with high appreciation often fail the 1% rule but still produce strong total returns. Always run a full cash flow analysis.