Net rental yield: Moving from Gross Rent to Net Rental Yield
Net rental yield subtracts operating costs from annual rent and compares the remainder with total property cost. It makes acquisition costs and expenses visible in the comparison.
Use the Net rental yield Calculator to enter your own figures and compare the result with the worked example below.
Net rental yield formula
Net yield (%) = (Annual rent − Operating costs) ÷ Total property cost × 100
Worked example
| Item | Example value |
|---|---|
| Annual rent | 24000 USD |
| Annual operating costs | 6000 USD |
| Total property cost | 300000 USD |
| Net rental yield | 6% |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Define operating costs consistently and distinguish financing payments. Confirm whether expected vacancy has already reduced the rent input.
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Method and further reading
The example follows the FinMathly calculator method. For broader background, see CFPB: Building a budget. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.