Investment
Rental Yield Calculator
Calculate gross yield, net yield, and cash-on-cash return for any rental property. Compare results across 5 countries.
Property
Annual Operating Costs
~22% federal marginal rate
Mortgage (optional)
Deal Score
Poor Deal
Smart Insights
Net yield below market average
3.19% net yield is below the 4% minimum typically expected in this market. Consider renegotiating the purchase price.
Negative monthly cash flow
The mortgage payments exceed rental income after expenses. This is a capital growth bet, not a cash flow investment.
DSCR below lender threshold
DSCR of 0.95 is below 1.25. Most lenders require rental income to cover 125–145% of mortgage payments.
High gross-to-net spread
Gross yield (8.00%) is significantly higher than net yield (3.19%). Review your cost assumptions — expenses may be underestimated.
8.00%
/yr
3.19%
/yr
-4.65%
/yr
Results
How It Works
Gross yield = annual rent / purchase price. Net yield deducts all operating costs (property tax, maintenance, insurance, vacancy, management, income tax). Cash-on-cash measures the annual cash flow relative to your actual capital invested (down payment + acquisition costs).
Country Assumptions — United States
Frequently Asked Questions
What is a good rental yield?
A gross yield above 5% is generally considered good in European markets. In the US, 6-8% gross is typical for cash-flowing properties. Net yield is more meaningful — aim for at least 3-4% net after all costs.
Gross yield vs net yield — which matters more?
Net yield is the true measure of profitability because it accounts for all operating costs. A property with 7% gross yield but high taxes and maintenance may net less than one with 5% gross yield in a low-cost market.
What is cash-on-cash return?
Cash-on-cash measures the annual pre-tax cash flow divided by the total cash invested (down payment + closing costs). It's the most relevant metric for leveraged investors because it shows the return on your actual money, not the property's total value.
How does leverage affect rental yield?
Leverage (mortgage) doesn't change gross or net yield, but it dramatically affects cash-on-cash return. With 80% LTV at a low rate, your cash-on-cash can be 2-3x the net yield. However, if rates rise above the net yield, leverage works against you.