Rental Yield: Analyze rental properties with cap rate, DSCR, and yields. The Rental Yield Calculator analyzes rental properties showing gross yield, net yield, cap rate, DSCR, and cash-on-cash return metrics.
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
Key metrics every real estate investor should know
Input purchase price, financing terms, and any renovation costs for your investment property.
Enter monthly rent, vacancy rate, and all operating expenses including taxes, insurance, and management fees.
Get instant calculations for gross yield, net yield, cap rate, cash-on-cash return, and monthly cash flow.
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.
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.
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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Key facts
Gross yield = annual rent ÷ price. Net yield = (annual rent − operating expenses) ÷ price. DSCR = NOI ÷ annual debt service.
A 10% gross and 6% net yield. Lenders on investment property usually want a DSCR of 1.20 or better.
The 1% rule says monthly rent should be at least 1% of the purchase price, so a $300,000 home would rent for $3,000. It is a quick screen, not an analysis: it ignores taxes, insurance and the rate on the loan, and in many markets few properties meet it. Use net yield and DSCR for the real decision.
Debt service coverage ratio is net operating income divided by the annual loan payments. Most investment-property lenders want at least 1.20 to 1.25, meaning the property earns 20% to 25% more than the payment. DSCR loans qualify on the property’s income rather than the borrower’s, so the ratio sets the maximum loan.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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