Free Net Rental Yield Calculator

Calculate net rental yield by accounting for vacancy, management fees, and all operating expenses.

USD
USD
%
USD

Net Rental Yield

7.12%

Net Annual Income$19,580
Effective Gross Income$25,080

Net Rental Yield vs Monthly Rent

Net Rental Yield

Net rental yield provides a realistic return picture by deducting vacancy losses and operating expenses from gross rent.

Formula

Net Yield = (Effective Rent - Expenses) / Purchase Price x 100

Where Effective Rent = Gross Rent x (1 - Vacancy Rate)

This Accounts For

  • Vacancy and collection losses
  • Property taxes, insurance, repairs
  • Property management fees
  • Maintenance and reserves
  • Example Calculation

    A $275,000 property rents for $2,200/month with 5% vacancy and $5,500 annual expenses.

    1. 01Gross annual rent: $2,200 x 12 = $26,400
    2. 02Effective rent after vacancy: $26,400 x 0.95 = $25,080
    3. 03Net income: $25,080 - $5,500 = $19,580
    4. 04Net yield: $19,580 / $275,000 x 100 = 7.12%

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