Real estate tool

Rental yield calculator

Enter property price, rent, and expenses — see gross yield, cap rate, net yield, and monthly cash flow live.

Start with the free manual tool. If you want the real document view after that, analyze a statement PDF.

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Free tool

Is this rental property actually a good investment?

Enter property price, rent, vacancy rate, and every monthly expense. The calculator shows gross yield, cap rate, net yield, and monthly / annual cash flow — plus benchmark ranges for each.

Property & rent

$

Purchase price (or current market value for re-evaluation).

$

Gross rent before vacancy losses.

Expected months vacant per year. 5% = ~2-3 weeks vacancy annually.

Monthly expenses

$

Principal + interest. Excludes escrow items.

$

Monthly property tax (annual ÷ 12).

$

Landlord insurance (annual ÷ 12).

$

Repairs, capex reserves. Rule of thumb: 1-2% of property value annually.

$

Monthly HOA, condo fees, or strata. Zero if none.

Monthly cash flow
$110

Positive cash flow — the property pays for itself plus $110/month after all expenses.

Gross yield
7.47%

Annual rent / property price. Ignores costs.

Cap rate
5.36%

Net operating income / property price. Ignores mortgage.

Net yield
0.29%

After vacancy, expenses, AND mortgage.

Annual cash flow
$1,320

Net profit per year.

Benchmark context

Gross yield 8%+: strong in most US / UK / AU markets. 5-8% typical for major metros.

Cap rate 6-10%: commonly cited as healthy. Under 5% usually means speculative appreciation play.

Cap rate ignores mortgage; net yield includes it. Both matter.

Natural next step

Need rental income verified?

For self-employed mortgages and bank-statement loans, lenders verify rental income from your bank statements. Upload your statement and our analyzer categorizes the rental deposits, giving you a clean income summary to submit with the loan application.

Extract transactions from the real fileSee category totals and recurring chargesExport the result to CSV

What it gives you

Fast enough for a first pass

Each tool is intentionally narrow. The job here is a clean estimate, not a fake replacement for a full statement analysis.

Three yield metrics

Shows gross, cap, and net yield simultaneously — each answers a different question investors ask.

Full expense breakdown

Includes vacancy rate, all operating expenses, and mortgage separately — no hidden assumptions.

Cash flow verdict

Surfaces monthly cash flow positive / negative immediately so you know if the property pays for itself.

When it's useful

A complete rental property yield calculator with gross, cap, and net yield in parallel.

First-time rental property buyers

Three yield metrics side by side help you understand why professionals look at cap rate differently from gross yield.

Experienced landlords comparing properties

Drop in numbers for each property under consideration. The one with the highest cap rate and reasonable net yield is usually the winner.

Anyone deciding whether to sell vs hold

Enter current market value (not purchase price) and current rent — see the yield on today's equity. Often the answer is 'sell and redeploy.'

Self-employed mortgage applicants

Rental income factors into bank-statement loan qualification. Pair this with the DTI and bank-statement-loan calculators to see the whole picture.

Deeper context

Why three yield metrics instead of one

Each metric answers a different question.

Gross yield compares properties quickly

Drop in different properties at the same price point and see which one's rent is highest relative to price. Good first-pass filter.

Cap rate is the professional benchmark

Strips out financing — the property economics alone. Let's you compare a 20%-down property to a 50%-down property fairly.

Net yield tells you what you'll actually earn

After mortgage, taxes, vacancy, maintenance — the number that matters to your bank account. Often much lower than gross yield suggests.

Deeper context

Common rental yield mistakes

Three patterns that turn good-looking deals into bad ones.

Using the brochure rent, not the market rent

Listed rents on Zillow / Rightmove are asking prices. Actual achievable rent is often 5-15% lower, especially in soft markets. Verify with completed listings, not asking prices.

Forgetting the vacancy allowance

A property that stays rented 11 months out of 12 has an 8% vacancy rate, not 0%. Include this in the calc.

Underestimating maintenance over time

Year-one maintenance is often low; by year five, you've had HVAC, appliances, and roof repairs. Budget 1-2% of property value annually, not 'what I spent last month.'

FAQ

Rental yield calculator
questions & answers