Rental Yield Calculator

Gross yield uses just rent vs. property value, it's the headline number you'll see on listings. Net yield subtracts annual operating expenses (taxes, insurance, maintenance, management) before dividing. Net yield is the more honest comparison because two properties with identical rent can have very different running costs.

It depends heavily on the market. Premium urban markets (London Zone 1, central Manhattan, Singapore CBD) often run 3%–4% net because investors price in appreciation. Secondary markets and smaller apartments typically deliver 5%–7%. Above 8% net is exceptional and usually signals either an underpriced asset or higher tenant/turnover risk.

Always net yield for actual decision-making. Gross yield is fine as a quick screen, but two assets with the same gross can have a 200-basis-point difference in net once HOA fees, property taxes, and insurance are factored in. The net number is what determines whether the deal pays for itself.

Net rental yield is mathematically very close to cap rate, both divide NOI (or near-NOI) by property value. The main difference is convention: 'cap rate' is used in commercial / institutional underwriting, 'rental yield' is the term residential investors and the UK / global market use. The intuition is identical.