Rental Yield Calculator — Gross & Net Yield on Investment Properties
“Gross rental yield tells you nothing. This rental yield calculator shows you net yield after all costs — which tells you everything.”
Use this free rental yield calculator to find both gross and net rental yield on any investment property after mortgage costs, maintenance, insurance, vacancy rate, and management fees — before you commit to a purchase.
What This Rental Yield Calculator Shows You
- Gross rental yield percentage based on annual rent and purchase price
- Net rental yield after every real expense
- Monthly cash flow positive or negative
- Annual net income on the property
- How vacancy rate changes your yield calculation
Is This Rental Property Actually a Good Investment?
Gross rental yield — annual rent divided by property price — is the number most real estate listings advertise. It makes properties look more attractive than they really are. Net rental yield which accounts for mortgage costs, maintenance, insurance, vacancy, and management fees is the number that tells you whether the investment actually makes financial sense.
This rental yield calculator calculates both so you can evaluate any property clearly and compare multiple properties on a fair consistent basis before committing capital.
How to Use This Rental Yield Calculator
Enter your property purchase price, monthly rental income, monthly mortgage payment, monthly maintenance budget, monthly insurance and property tax, vacancy rate percentage, and property management fee if applicable.
The rental yield calculator shows your gross yield, net yield, and monthly cash flow — so you can see immediately whether a property is worth pursuing at its asking price.
What Separates Good Rental Investments From Bad Ones in 2026
This rental yield calculator makes the difference between gross and net yield immediately visible — and the gap is often shocking:
A property with 8% gross yield might have only 2% net yield once all costs are properly accounted for. Another property with 6% gross yield in a lower-cost area might net 4.5% because expenses are proportionally lower relative to rent.
The only way to compare properties fairly is on net yield and monthly cash flow. And the only way to calculate those accurately is to include every real cost in your rental yield calculator — not just the headline numbers from a listing presentation.
Real Numbers — What Different Yield Levels Mean in 2026
Here is what this rental yield calculator shows for a typical US residential rental at different yield scenarios:
Property value: $300,000
Monthly rent: $2,200
Gross yield: 8.8%
Monthly costs:
Mortgage (7% rate, 30yr): -$1,995
Maintenance (1% annually): -$250
Insurance and tax: -$350
Vacancy (8%): -$176
Management fee (8%): -$176
Monthly cash flow: -$747
Net annual yield: 0.0%This property has 8.8% gross yield and negative cash flow. The rental yield calculator shows immediately that this property loses money every month at current mortgage rates and operating costs. A buyer relying on gross yield alone would not see this until after purchasing.
Vacancy — The Variable That Changes Everything
This rental yield calculator lets you model different vacancy scenarios to find your worst-case cash flow position:
At 100% occupancy — $2,200/month gross revenue
At 92% occupancy (8% vacancy) — $2,024/month gross revenue
At 85% occupancy — $1,870/month gross revenue
At 70% occupancy — $1,540/month gross revenue
The difference between 92% and 70% occupancy is $484/month — $5,808/year. In many markets this difference determines whether a rental property is cash flow positive or negative. Always model at realistic vacancy rates for your specific market not optimistic best-case scenarios.
How Mortgage Rates Affect Rental Yield in 2026
At 7% mortgage rates in 2026 many properties that were cash flow positive at 3% rates in 2021 are now cash flow negative at the same rent levels. This rental yield calculator lets you model different mortgage scenarios:
At 3% rate on $300,000 — monthly payment $1,265
At 5% rate on $300,000 — monthly payment $1,610
At 7% rate on $300,000 — monthly payment $1,996
The $731/month difference between a 3% and 7% mortgage on the same property is the primary reason rental property cash flow analysis requires a current mortgage rate — not the rate from two years ago.
How to Find Cash Flow Positive Properties With This Calculator
Use this rental yield calculator to screen properties efficiently:
Target net yield above 5% — below 5% net yield the management burden rarely justifies the return compared to alternative investments.
Model at 90% occupancy not 100% — always use a conservative occupancy assumption. If the property only works at 100% occupancy it does not work.
Include management fees even if self-managing — your time managing the property has value. Including a 8-10% management fee shows the true cost and helps you decide whether professional management makes sense.
Test price sensitivity — use this rental yield calculator to find what purchase price produces your target net yield at the current rent level. This is your maximum offer price.
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Frequently Asked Questions
What net rental yield is considered good in this rental yield calculator?
In most US markets 5-8% net yield is considered solid for a residential rental property in 2026. Below 4% net yield the property may not generate enough cash flow to justify the management burden and illiquidity compared to other investments. Above 8% net yield typically indicates either below-market purchase price or higher risk location.
Should I include mortgage principal repayment in this rental yield calculator?
For cash flow analysis include your full mortgage payment including principal. For yield calculation you can separate principal from interest since principal repayment builds equity rather than being a pure cost. This rental yield calculator shows both cash flow and yield so you can analyze both perspectives simultaneously.
What vacancy rate should I enter for my market?
Research your specific market vacancy rate using local property management company data or census vacancy statistics. Most stable US residential markets run 5-10% vacancy annually. High-demand urban markets may be lower. Rural or transitional markets may be higher. Never enter 0% vacancy — it does not reflect real-world conditions.
Should I include property management fees even if I self-manage?
Yes — include 8-10% management fee even if you currently self-manage. This shows the true economic cost of your time and gives you an accurate picture of the property’s standalone profitability. It also helps you decide at what point hiring a property manager makes financial sense.
How do I calculate maintenance costs for this rental yield calculator?
Budget 1-2% of property value annually for maintenance and capital expenditure. On a $300,000 property that is $3,000-6,000/year or $250-500/month. Older properties need the higher end. Newer properties with recent updates may need less initially but should still maintain a maintenance reserve.
What is the difference between gross yield and net yield in this rental yield calculator?
Gross yield is annual rent divided by property purchase price — it ignores all costs. Net yield accounts for all operating costs including mortgage interest, maintenance, insurance, vacancy, and management fees. Net yield is the only number that tells you whether an investment property actually generates positive returns.
