Calculate gross and net rental yield — the two numbers that actually tell you whether a property's rental story holds up.
Gross rental yield = (Annual Rent ÷ Property Value) × 100 — a simple, quick measure of income return, ignoring costs. Net rental yield = ((Annual Rent − Annual Running Costs) ÷ Property Value) × 100 — a more realistic figure that accounts for maintenance, property tax, insurance, and periodic repairs.
Rental yield alone doesn't capture the full return on a property investment — capital appreciation is the other half. See our Capital Appreciation Estimator for a what-if projection of the other side of the equation.
