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Rental yield calculator

Enter the price, the rent, the costs and the loan — get the gross and net yield, the cash flow and the return on the cash you put in.

Your numbers

When the property is let.

The share of the year it stands empty. 5 % is only where the field opens.

Maintenance, insurance, fees and property costs that fall on you; not the loan and not tax.

The cash you put in, as a share of the price. The rest is borrowed.

Nominal annual rate, from your offer.

Result

Net yield (cap rate)

5.9%

Put a second set of numbers beside this one and see the difference.

Gross yield
7.68%
Net operating income per year
$14,740
Loan payments per year
$13,153
Cash flow per year
$1,587
Cash flow per month
$132
Cash-on-cash return
2.54%
Gross rent multiplier
13

Rent of $1,600 a month is a gross yield of 7.68%. After vacancy and costs the net operating income is $14,740 a year, a net yield of 5.9%. After $13,153 of loan payments the cash flow is $1,587 a year ($132 a month), 2.54% on the cash you put in. The price is 13 times a year’s rent.

Gross yield is a year’s rent ÷ price. Net yield is the rent received after vacancy, less running costs, ÷ price, before the loan. The loan is an annuity at a nominal annual rate charged monthly, borrowed on the price less the deposit; cash-on-cash is the yearly cash flow ÷ the deposit. Rent and costs are held flat. Tax, purchase costs, rent rises and changes in the price are not included.

What this answers

What does a rented-out property earn? The calculator gives the yield before and after vacancy and running costs, the cash flow once the loan is paid, and what that cash flow is as a return on the deposit.

Formula

Gross yield = 12 × rent / price

Net operating income = 12 × rent × (1 − vacancy) − running costs

Net yield (cap rate) = net operating income / price

Cash flow = net operating income − loan payments

Cash-on-cash = cash flow / deposit

Gross rent multiplier = price / (12 × rent)

Worked example

A 250,000 property let at 1,600 a month: 19,200 a year, a gross yield of 7.68% and a multiplier of 13.0. With 5% vacancy and 3,500 of costs the net operating income is 14,740, a net yield of 5.90%. With a 25% deposit (62,500) and a 5% loan over 25 years the loan costs 13,153 a year, leaving a cash flow of 1,587, 2.54% on the 62,500.

The numbers you fill in yourself

Rent, vacancy, costs and the loan are yours; the page opens on round examples. Where the loan rate is above the net yield, borrowing lowers the return on the cash.

What is not included

Tax, purchase costs, rent rises and price changes. Rent and costs are held flat.

Last reviewed October 20, 2026 ·How pages are reviewed

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