Rental Yield & ROI Calculator
See what a rental property really earns. Enter the price, rent and running costs to get gross and net rental yield, monthly cash flow and your return on the cash you put in.
What Is Rental Yield?
Rental yield is the yearly income a property produces, shown as a percentage of what it cost. It lets you compare properties at different prices on equal terms, and compare property with other investments.
How This Calculator Works
- Gross yield = yearly rent ÷ purchase price × 100. Quick to work out, but it ignores costs.
- Net operating income (NOI) = yearly rent + other income − vacancy allowance − running costs. Loan payments are not included.
- Net yield = NOI ÷ total cost to buy (price + buying costs + renovation) × 100. The more realistic measure of what the property earns.
- Cap rate = NOI ÷ purchase price × 100, commonly used to compare properties regardless of financing.
- Cash flow = NOI − yearly loan payments. What is actually left each year.
- Cash-on-cash return = yearly cash flow ÷ cash you put in (down payment or full price, plus buying costs and renovation) × 100.
What Is a Good Rental Yield?
It depends on the location and the type of property. Expensive city-centre homes often have lower yields but may grow more in value, while cheaper areas can offer higher yields with more risk of empty periods and repairs. Compare the net yield against similar properties nearby and against what you could earn elsewhere, rather than aiming for a single number.
Tips for Accurate Results
- Use the rent similar homes actually achieve, not the asking rent on listings.
- Always include a vacancy allowance, even for a property that is let today.
- Budget for maintenance. Many landlords set aside around 1% of the property value each year.
- Remember income tax on rental profits, which this calculator does not include.
These figures are estimates for comparison only and are not financial advice.
Frequently Asked Questions
What is the difference between gross and net rental yield?
Gross yield only looks at rent against price. Net yield subtracts running costs and allows for empty periods, so it shows what the property really earns before loan payments and tax.
Why can cash flow be negative when the yield looks good?
Yield ignores how the purchase is financed. High interest rates or a small down payment can make loan payments larger than the net income, even on a property with a healthy yield.
Is my information saved?
No. All calculations happen in your browser and nothing you enter is sent to Rhentto.