Calculate the gross and net rental yield and cap rate for an investment property — the core metrics every real estate investor uses to compare deals.
How it works
- Enter the purchase price of the rental property.
- Enter expected monthly rent and total monthly expenses.
- Adjust the expected vacancy rate to view the property cap rate and net yield.
Frequently asked questions
What is a good rental yield?
In the US, 5–8% gross yield is considered reasonable. Net yield after expenses is typically 3–5%. Location matters enormously — high-appreciation markets often have lower yields.
Cap rate vs net yield?
Net yield includes your specific financing; cap rate ignores it — making cap rate the standard for comparing properties on their own merits.
What counts as expenses?
Property tax, insurance, property management (typically 8–10% of rent), maintenance reserves (~1% of value/year), and vacancy losses.