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Home, Property & Mortgages

Net Rental Yield Calculator

Calculate net rental yield after running costs, using the total purchase cost including fees and refurbishment.

Your inputs

Results

Net rental yield

5%

Gross yield on price
7.2%
Net annual income
$13,000.00

✓Exact calculation — rounded only for display

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

Net yield subtracts running costs from rent and divides by the full amount you spent to acquire the property, giving a more realistic return than gross yield.

Formula and method

Net yield = (annual rent − annual running costs) ÷ (price + purchase costs)

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Property price: 250000 (any currency)
  • Purchase costs (fees, taxes, refurbishment): 10000 (any currency)
  • Annual rent received: 18000 (any currency)
  • Annual running costs (excl. mortgage): 5000 (any currency)

Results

  • Net rental yield: 5%
  • Gross yield on price: 7.2%
  • Net annual income: 13,000

How to read the results

The gap between gross and net yield shows how much costs eat into the return.

Assumptions and limitations

  • Mortgage interest is excluded so that properties can be compared independent of financing.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Should I include letting-agent fees?

Yes, include all recurring costs of owning and renting the property.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy