How is gross yield calculated?
Annualize monthly rent by multiplying it by 12, divide by purchase price, then multiply by 100. Gross yield does not subtract operating costs.
MossMeter tool
Rental Yield Calculator
Compare a property’s annual rent with its purchase price and operating costs to see gross and net rental yield.
Property figures
Enter all three amounts in the same currency. Currency symbols are omitted.
Enter the property's purchase price.
Enter the purchase price.
Enter gross monthly rent before expenses. Multiply by 12 to estimate gross annual rent.
Enter monthly rent.
Total yearly costs to operate the property.
Enter annual operating costs.
Rental yield
Complete all three fields with valid amounts to see your results.
Learn which rental-property return metric to use
Yield figures are estimates based on the values you enter and are not investment advice. The calculator uses only your purchase price, rent, and annual operating costs; other costs and financing are excluded unless you include them in those inputs.
Rental yield summary
Entered figures are shown as provided. Annual amounts use dollar formatting; no currency conversion is applied.
Entered values
- Purchase price
- Not entered
- Monthly rent
- Not entered
- Annual operating costs
- Not entered
No results
Complete all three fields with valid amounts to calculate rental yield.
- Enter the purchase price.
- Enter monthly rent.
- Enter annual operating costs.
Inputs and formulas
Enter all three amounts in a consistent currency. The calculator uses the figures you provide to estimate gross and net yield.
- Purchase price
- The amount paid for the property. It is the denominator in both the gross and net yield formulas.
- Monthly rent
- The rental amount for one month. The calculator multiplies it by 12 to estimate annual rent.
- Annual operating costs
- The total cost to operate the property for one year. This amount is subtracted from annual rent for net yield.
Gross yieldGross yield (%) = (monthly rent × 12 ÷ purchase price) × 100
Net yieldNet yield (%) = ((monthly rent × 12 − annual operating costs) ÷ purchase price) × 100
Frequently asked questions
How does net yield differ from gross yield?
Subtract the annual operating costs you enter from annualized rent before dividing by purchase price. Both percentages reflect only the supplied figures.
What should I include in annual operating costs?
Enter relevant yearly property costs. Common categories include maintenance, insurance, and property taxes; use estimates that apply to the property.
Does the calculator account for vacancy or financing?
It assumes the entered monthly rent applies for all 12 months and subtracts only the annual operating costs entered. It makes no separate vacancy or financing adjustment; include relevant yearly costs in the operating-cost figure if appropriate.
What does a negative net yield mean?
The entered annual operating costs exceed annualized rent, so the calculation produces negative net rent and yield. It reflects the inputs and is not an investment recommendation.
How does gross rental yield differ from cap rate?
Gross yield compares annual rent with purchase price before operating costs; cap rate compares annual net operating income (NOI) with property price. Both are property-level measures before financing. MossMeter's rental-yield calculator reports gross and net rental yield; its cap-rate calculator uses NOI and property price.
What is cash-on-cash return, and how does financing affect it?
Cash-on-cash return compares annual pre-tax cash flow after debt service with total cash invested. Debt service and cash invested make financing terms relevant. The rental-yield calculator does not calculate debt service or total cash invested.
Should I include HOA or condo fees in annual operating costs?
Include recurring fees paid by the owner in the annual estimate. The calculator subtracts only the annual amount entered; it does not identify, estimate, or verify individual expense categories.
What is the 1% rule for rental properties?
The 1% rule is a rough screening heuristic that compares monthly rent with purchase price: rent at or above 1% of price meets the rule of thumb. It does not include operating costs or financing and does not guarantee a profitable investment.
Does a higher rental yield always mean a better investment?
No. Yield summarizes entered rent and price, and net yield also subtracts only entered annual operating costs; it does not capture every property, market, or investment factor. Compare consistent assumptions and consider other property-specific risks.