Rental Yield Calculator: Gross Yield vs. Net Yield

What Is Rental Yield?

Rental yield measures the annual rental income a property generates as a percentage of its value. It is one of the quickest ways to compare income potential across properties and markets — especially popular in international real estate markets and UK investing.

Gross yield uses total rent before expenses. Net yield subtracts operating costs to show what you actually keep.

Gross vs. Net Rental Yield

Gross Rental Yield = (Annual Rental Income ÷ Property Value) × 100

Net Rental Yield = ((Annual Rental Income − Annual Expenses) ÷ Property Value) × 100

A property with $24,000 annual rent and a $300,000 value has an 8% gross yield. After $8,000 in expenses, net yield drops to 5.3%.

Rental Yield vs. Cap Rate

Rental yield and cap rate are closely related. Cap rate is essentially net yield when NOI is calculated the same way. The key difference is that cap rate is the standard terminology in US commercial real estate, while rental yield is more common in residential and international contexts.

Using the Rental Yield Calculator

Enter annual rental income and property value to instantly see gross yield. Compare yields across neighborhoods, property types, and markets to identify where your capital may work hardest.

Remember: high yield can signal high risk. Always investigate why a property yields above market average — deferred maintenance, tenant issues, or neighborhood decline are common explanations.