Rental Yield Calculator

Calculate gross yield, net yield, and cash-on-cash return for rental properties. Factor in all expenses including mortgage, taxes, insurance, and management fees. Compare cash purchase vs financed returns.

Property Purchase Price ($)

Monthly Rent ($)

Annual Expenses

Property Tax ($/year)

Insurance ($/year)

Maintenance ($/year)

HOA Fees ($/month)

Property Management (%)

Vacancy Rate (%)

Other Expenses ($/year)

Mortgage Details

Down Payment (%)

$60,000 down

Interest Rate (%)

Loan Term (years)

Cash-on-Cash Return

-7.88%

Poor

Gross Yield

8.00%

Net Yield

4.49%

Annual Cash Flow

-$4,728

Monthly Cash Flow

-$393.96

Expense Ratio

43.85%

Gross Rent Multiplier

12.50x

Break-Even Occupancy

114.70%

Total Return (w/ equity)

-3.41%

Expense Breakdown

Expenses

$9,324

Property Tax$3,600/yr

Insurance$1,500/yr

Maintenance$2,400/yr

Management$1,824/yr

Vacancy Loss$1,200/yr

Monthly Cash Flow

Gross Monthly Rent$2,000.00

Less: Vacancy (5%)−$100.00

Property Tax−$300.00

Insurance−$125.00

Maintenance−$200.00

Management (8%)−$152.00

Mortgage Payment−$1,516.96

Net Monthly Cash Flow-$393.96

Mortgage vs. Cash Purchase Comparison

Metric	With Mortgage	Cash Purchase
Cash Required	$60,000	$300,000
Monthly Mortgage Payment	$1,516.96	$0.00
Monthly Cash Flow	-$393.96	+$1,123.00
Annual Cash Flow	-$4,728	+$13,476
Cash-on-Cash Return	-7.88%	4.49%
Total Return (incl. equity)	-3.41%	4.49%

Cash-on-Cash Return Comparison

With Mortgage-7.88%

Cash Purchase+4.49%

Using a mortgage typically amplifies cash-on-cash returns through leverage but reduces monthly cash flow due to debt service. Cash purchases provide greater monthly cash flow but require significantly more capital upfront.

Year-by-Year Projection (10 years)

Equity Growth Over Time

Y10

Rent Sensitivity Analysis

Monthly Rent	Gross Yield	Net Yield	Monthly Cash Flow	Cash-on-Cash
$1,600.00(-20%)	6.40%	3.09%	-$743.56	-14.87%
$1,800.00(-10%)	7.20%	3.79%	-$568.76	-11.38%
$1,900.00(-5%)	7.60%	4.14%	-$481.36	-9.63%
$2,000.00Current	8.00%	4.49%	-$393.96	-7.88%
$2,100.00(+5%)	8.40%	4.84%	-$306.56	-6.13%
$2,200.00(+10%)	8.80%	5.19%	-$219.16	-4.38%
$2,400.00(+20%)	9.60%	5.89%	-$44.36	-0.89%

Shows how changes in monthly rent affect your yields and cash flow, with all other variables held constant.

How Rental Yield is Calculated

Gross Rental Yield

Gross Yield = (Annual Rental Income / Purchase Price) x 100%

The simplest yield metric. Does not account for expenses or vacancy.

Net Rental Yield

Net Yield = (Annual Rent - Vacancy - Expenses) / Purchase Price x 100%

A more accurate measure that accounts for operating expenses and vacancy loss. Does not include mortgage payments.

Cash-on-Cash Return

Cash-on-Cash = (NOI - Annual Mortgage Payments) / Total Cash Invested x 100%

Measures the return on your actual cash investment (down payment for leveraged purchases). Accounts for mortgage debt service.

Break-Even Occupancy

Break-Even = (Operating Expenses + Debt Service) / Gross Rent x 100%

The minimum occupancy rate needed to cover all expenses. A lower percentage indicates a safer investment with more margin for vacancy.

Disclaimer: This calculator provides estimates for informational purposes only. Actual rental yields and cash flows may vary based on local market conditions, property-specific factors, tenant turnover, unexpected repairs, and changes in property values. Mortgage calculations are approximations and do not include closing costs, points, or PMI. Tax implications including depreciation, deductions, and capital gains are not included. Consult with a qualified real estate professional, tax advisor, or financial planner before making investment decisions.

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How to Use Rental Yield Calculator

1Enter the property price and monthly rent.
2Add annual expenses and mortgage details.
3View gross yield, net yield, and cash-on-cash return.
4Compare cash purchase vs financed scenarios.

Frequently Asked Questions

What is the difference between gross and net yield?▾

Gross yield = Annual Rent / Property Price. Net yield subtracts all operating expenses (taxes, insurance, maintenance, vacancy, management). Net yield gives a more accurate picture of actual returns.

What is cash-on-cash return?▾

Cash-on-cash return measures the annual pre-tax cash flow relative to the total cash invested (down payment + closing costs). It's especially useful for financed properties where leverage amplifies returns.

What expenses should I include?▾

Include property tax, insurance, maintenance (budget 1-2% of value annually), property management (8-10%), vacancy allowance (5-8%), HOA fees, and any utilities you cover as landlord.

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About Rental Yield Calculator

NexTool's Rental Yield Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.