Calculate gross and net rental yield on investment properties. Factor in expenses, vacancy, and management fees.
Enter your values
Open the Rental Yield Calculator and fill in the required input fields with your numbers or selections.
Review the calculation
The tool automatically computes the result as you type. Double-check your inputs to ensure accuracy.
Interpret your results
Review the calculated output along with any breakdowns, charts, or explanations provided to understand what the numbers mean for your situation.
Based on standard mortgage and real estate industry formulas
Published by ConvertCrunch Editorial Team | Our Methodology
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Upfront rehab or repairs
Typical: 5-10%
% of collected rent
Repairs, landscaping, etc.
Expected annual property value increase
Evaluating a rental property investment requires looking at several different return metrics, each telling you something different about the deal. The two most important are the cap rate and the cash-on-cash return.
The capitalization rate (cap rate) measures a property's return independent of financing. It is calculated as:
Cap Rate = Net Operating Income (NOI) ÷ Purchase Price
A higher cap rate means a higher return relative to the property price. Cap rates typically range from 4% to 10% depending on the market, property type, and risk level. A 5-6% cap rate is common in stable metropolitan areas, while 8-10% may be found in higher-risk or secondary markets.
Cash-on-cash return measures the annual return on the actual cash you invested (down payment, closing costs, renovation). Unlike cap rate, it accounts for mortgage leverage:
Cash-on-Cash = (NOI - Annual Mortgage Payments) ÷ Total Cash Invested
Because leverage amplifies returns, your cash-on-cash return can be significantly higher or lower than the cap rate. A good cash-on-cash return for a rental property is generally 8-12% or higher.
New investors often underestimate vacancy (budget 5-10% of gross rent), maintenance (1% of property value per year is a common rule), and capital expenditures (roof, HVAC, appliances that need replacement every 10-20 years). Property management fees of 8-12% are another significant cost if you do not plan to self-manage.