Gross Rental Yield Calculator: Annual Rent Over Property Price
Work out a rental property's gross yield — the headline percentage that compares rent against price before any costs are taken out.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Gross rental yield | Non-yield share |
|---|---|---|
| $24k rent · $400k price | 6.00% | 94.00% |
| $18k rent · $300k price | 6.00% | 94.00% |
| $60k rent · $1.2M price | 5.00% | 95.00% |
| $10k rent · $200k price | 5.00% | 95.00% |
How This Calculator Works
Enter annual gross rent and the property price. The calculator divides one by the other and multiplies by 100 to give the gross rental yield — the first-pass figure landlords use to screen properties before running the full underwriting.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
A property collecting $24,000 a year on a $400,000 price tag posts a 6% gross rental yield. After taxes, insurance, vacancy, maintenance, and management, the net yield (cap rate) is usually 1.5 to 2.5 percentage points lower — a 6% gross typically becomes a 3.5% to 4.5% net.
Key Insight
Gross yield is for quick screening, not for buying decisions. Two properties with identical 6% gross yields can have very different net yields once operating costs are subtracted — high-tax markets, older buildings, and high-management-fee markets all chew into the gross. Use gross yield to shortlist; use cap rate to choose.
Frequently Asked Questions
How is gross rental yield calculated?
Divide annual gross rent by the property price, then multiply by 100. $24,000 of rent on a $400,000 property is a 6% gross yield.
What is the difference between gross yield and cap rate?
Gross yield uses gross rent. Cap rate uses net operating income — gross rent minus operating expenses. Cap rate is the more honest figure for buying decisions; gross yield is faster for screening.
What is a good gross rental yield?
Residential rentals in US markets commonly run 5% to 9% gross. Supply-constrained metros run lower because price growth absorbs the yield; weaker markets run higher with more operating risk.
Should I use purchase price or current value?
Use whichever fits the question. Purchase-price yield reflects what you actually paid; current-value yield reflects today's market and is what a potential buyer would see.
Does gross yield include vacancy?
No — gross yield assumes 100% occupancy. Real-world vacancy reduces actual rent collected and is one of the reasons net yield ends up below gross.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source.
Methodology & Review
Gross rental yield is annual gross rent divided by the property price, multiplied by 100. It is intentionally pre-expense — a first-pass screening figure. Net yield, also known as cap rate, subtracts operating expenses and is the underwriting metric.
Written by Ugo Candido · Last updated May 17, 2026.