Calculator

Rental yield calculator

Calculate gross rental yield.

The short answer

$2,000 a month on a $400,000 property is a 6% gross yield.

Gross rental yield

Gross yield = annual gross rent ÷ property value. Net yield = (gross rent − operating expenses) ÷ (value + purchase costs)

Annual rent
$24,000.00
Gross yield
6%
Net yield
6%
Show the arithmetic
  • Annual rent: 2000 × 12 = 24000
  • Gross yield: 24000 ÷ 400000 = 6%
  • Net yield: (24000 − 0) ÷ 400000 = 6%
Worked example

$2,000 a month on a $400,000 property is a 6% gross yield.

Assumptions
  • Gross yield ignores every expense; net yield is the more comparable figure.
  • Purchase costs mean closing costs and any initial work needed before letting.

Every figure is calculated from the values you entered. Nothing is fetched from market data, and this is general information rather than financial, legal or tax advice.

Formula

Gross yield = annual gross rent ÷ property value. Net yield = (gross rent − operating expenses) ÷ (value + purchase costs)

What you need

  • Monthly rent
  • Property value
  • Annual operating expenses
  • Purchase costs

Worked example

$2,000 a month on a $400,000 property is a 6% gross yield.

Assumptions and units

  • Gross yield ignores every expense; net yield is the more comparable figure.
  • Purchase costs mean closing costs and any initial work needed before letting.

Limitations

Every figure is calculated from the values you enter — nothing is estimated from market data. Real outcomes depend on your state, your lease terms and your property. This is general information, not financial, legal or tax advice.

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