GenzeeRental Yield Calculator
Work out the gross and net rental yield on a property from its price, monthly rent and annual running costs.
Net rental yield
5.60%
After expenses, per year on the property's price
Gross yield vs. net yield
Gross yield is annual rent divided by the property's price — a quick, rough comparison figure. Net yield subtracts annual running costs (maintenance, property tax, insurance, management fees) first, which gives a more realistic picture of the actual return, since two properties with identical gross yields can have very different net returns depending on their upkeep costs.
What counts as an "annual expense" here
Ongoing running costs only — maintenance and repairs, property tax, insurance, and management fees if you use an agent. It deliberately excludes the purchase price itself and one-off costs like stamp duty or renovation, since those are part of the initial investment decision rather than the ongoing yield.
Yield isn't the whole picture
A high yield doesn't automatically mean a good investment — it can also signal a higher-risk area, more tenant turnover, or a property needing more maintenance than average. Yield is one input among several (alongside expected capital appreciation, financing costs, and vacancy risk) that go into a full property investment decision.
Frequently asked questions
What's a "good" rental yield?
It varies a lot by city and property type, but as a very rough guide, many investors look for net yields above 5-6% as a starting benchmark — though this depends heavily on local market norms and what return alternative investments could offer.
Should I include mortgage payments in expenses?
This calculator treats yield as if the property were bought outright, so mortgage/financing costs are deliberately excluded — that lets you compare properties on the property's own merits, separate from how any one buyer chooses to finance it.
Does yield account for vacancy periods?
Not directly — the monthly rent figure assumes the property is occupied. For a more conservative estimate, reduce the monthly rent input by your expected vacancy rate (e.g. 5-10% for a typical vacancy allowance) before calculating.