Rental Yield Calculator
Analyze rental property investments with comprehensive yield metrics. Calculate gross yield, net yield, cap rate, cash-on-cash return, and monthly cash flow.
Gross Yield
8.23%
Net Yield (Cap Rate)
0.48%
Cash-on-Cash Return
-18.82%
Monthly Cash Flow
-$1,607
INCOME
OPERATING EXPENSES
Understanding Rental Yields
Key metrics every real estate investor should know
- 1.Use conservative rent estimates (verify with comps)
- 2.Budget 5-10% for vacancy, even in hot markets
- 3.Include property management even if self-managing
- 4.Maintenance costs are often underestimated
- 5.Factor in capital expenditures (roof, HVAC, etc.)
- 6.Consider appreciation potential beyond cash flow
- 7.Compare multiple properties before deciding
- 8.Get professional inspection before purchase
How It Works
1. Enter Property Details
Input purchase price, financing terms, and any renovation costs for your investment property.
2. Add Income & Expenses
Enter monthly rent, vacancy rate, and all operating expenses including taxes, insurance, and management fees.
3. Analyze Your Returns
Get instant calculations for gross yield, net yield, cap rate, cash-on-cash return, and monthly cash flow.
Frequently Asked Questions
The Complete Rental Yield Calculator for Smart Investors
Making informed real estate investment decisions requires understanding multiple financial metrics. Our free rental yield calculator helps you analyze potential rental properties by calculating gross yield, net yield (cap rate), cash-on-cash return, DSCR, and monthly cash flow in one comprehensive tool. Whether you're evaluating your first rental property or expanding a portfolio, these metrics are essential for comparing opportunities and avoiding costly mistakes.
Why Rental Yield Analysis Matters
Successful real estate investors don't rely on gut feelings or rough estimates. They analyze deals using proven metrics that reveal the true profit potential of a property. Gross yield provides a quick initial screen, but it's the net yield and cash-on-cash return that tell the real story. By accounting for all operating expenses, vacancy rates, and financing costs, you can see exactly what returns to expect and compare properties on an apples-to-apples basis.
Beyond the Numbers: Making Better Investment Decisions
While yield calculations are critical, they're just one part of the investment analysis. Consider the neighborhood trajectory, tenant quality, potential for appreciation, and your long-term investment goals. A property with a slightly lower yield in an appreciating market may outperform a high-yield property in a declining area. Use this calculator as a starting point, then factor in qualitative aspects before making your final decision.
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