Rental Yield Calculator: Analyze Real Estate Investment Returns
Make Smarter Property Investment Decisions with Our Free ROI Calculator
Considering a real estate investment but unsure about its potential returns? Our Rental Yield & ROI Calculator helps property investors like you make data-driven decisions by quickly analyzing the financial viability of any residential investment property.
What This Calculator Helps You Determine
Whether you’re a first-time investor or an experienced property portfolio manager, this calculator provides the essential metrics needed to evaluate any rental property investment:
- Gross Rental Yield – Understand the annual return percentage before expenses
- Cash-on-Cash Return – See the actual return on your invested capital
- Capitalization Rate – Analyze a property’s intrinsic profitability regardless of financing
- Monthly Cash Flow – Calculate exactly how much passive income you’ll generate
- Complete Financial Breakdown – View all income and expenses in a clear, organized format
Rental Yield & ROI Calculator
Analyze your real estate investment potential
Why Calculate Rental Yield Before Investing?
Smart property investment starts with understanding the numbers. By calculating rental yield and ROI before purchasing:
- Avoid Negative Cash Flow Properties – Identify properties that will cost more than they generate
- Compare Multiple Investment Opportunities – Evaluate different properties using consistent metrics
- Secure Better Financing – Approach lenders with comprehensive property analysis
- Plan for Future Growth – Understand your investment’s current performance and future potential
- Make Objective Decisions – Remove emotion from the equation with concrete financial data
How to Use the Calculator
Our calculator offers two analysis modes to suit your needs:
Basic Calculation
Perfect for quick property evaluation. Simply enter:
- Property purchase price
- Expected monthly rental income
Advanced Analysis
For a comprehensive investment breakdown, enter additional details:
- Down payment and closing costs
- Mortgage terms and interest rate
- Property taxes and insurance
- Maintenance costs and vacancy rate
After entering your information, click “Calculate” to instantly see your potential returns. All calculations happen in your browser—we don’t store your financial information.
Understanding Your Results
Gross Yield
This percentage represents your annual rental income divided by the property price before expenses. While a higher yield is generally better, typical residential rental yields range from 5-10% depending on location and property type.
Cash-on-Cash Return
This metric shows the annual cash income earned compared to the cash invested, giving you a clearer picture of your actual return on investment. Many investors target a minimum 8-10% cash-on-cash return.
Cap Rate
The capitalization rate helps you evaluate a property’s performance regardless of financing terms. This is particularly useful when comparing different investment opportunities or determining a property’s fair market value based on its income potential.
Start Calculating Your Potential Returns
Try our calculator below to analyze your next real estate investment and make a more informed decision. The right property at the right price can provide years of passive income and long-term wealth building—our calculator helps you find that perfect investment opportunity.