Free Gross Rental Yield Calculator

Calculate the gross rental yield by dividing annual rental income by the property purchase price.

USD
USD

Gross Rental Yield

9.60%

Annual Rental Income$24,000
Monthly Yield0.800%

Gross Rental Yield vs Monthly Rent

Gross Rental Yield

Gross rental yield is the simplest measure of rental property return, using total rent before any expenses.

Formula

Gross Yield = (Monthly Rent x 12) / Purchase Price x 100

Advantages

  • Quick to calculate with minimal data
  • Easy to compare across properties
  • Useful for initial screening before deeper analysis
  • Example Calculation

    A property purchased for $250,000 rents for $2,000 per month.

    1. 01Annual rent: $2,000 x 12 = $24,000
    2. 02Gross yield: $24,000 / $250,000 x 100 = 9.60%
    3. 03Monthly yield: $2,000 / $250,000 x 100 = 0.800%

    Frequently Asked Questions

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