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How to use
- Enter Annual gross rent.
- Enter Property value.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
Gross rental yield = annual rent ÷ property value × 100
Example
Annual rent of 72,000 on a property valued at 900,000 gives an 8% gross yield and 6,000 monthly equivalent.
Important notes
Gross yield ignores vacancy, maintenance, management and taxes. Use net yield when comparing after operating costs.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Gross yield | 72000 ÷ 900000 × 100 | 8 % |
| Monthly equivalent | 72000 ÷ 12 | 6,000 |
Frequently asked questions
How does this differ from cap rate?
Gross yield uses rent before expenses; cap rate uses NOI after operating expenses.
Should inputs cover the same period?
Yes. When comparing income, expense, balance or price figures, keep the period and definitions consistent.
Is the result a final property valuation?
No. The calculator gives a numerical relationship only; real decisions also depend on location, market conditions, taxes, financing and risk.