What is rental yield?
The annual rent a property earns as a percentage of its price. It tells you how hard your money works as income, separate from any price growth.
// real-estate › Advanced
Rental Yield Calculator
Gross and net rental yield — the annual rent as a percentage of the property's price, before and after running costs.
gross yield = annual rent / price × 100 ; net yield subtracts annual costs
Frequently asked questions
Gross or net, what is the difference?
Gross yield uses rent alone; net yield subtracts running costs like rates, insurance, management and maintenance. Net is the truer picture of what you actually pocket.
What is a good yield?
It varies by market. High-growth city areas often have low yields (you are paying for future capital gains), while cheaper regional properties may yield more but grow slower.
Why does yield matter to investors?
Because it shows the income return, which helps cover the mortgage and costs. A property can have a great yield but poor growth, or the reverse, so investors weigh both.
Does yield change over time?
Yes. As rents rise or the property's value changes, the yield moves. Investors often quote yield against the purchase price and again against current value.