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How to use
- Enter Annual rent.
- Enter Annual operating expenses.
- Enter Property value.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
Net rental yield = (annual rent − operating expenses) ÷ property value × 100
Example
Rent of 72,000 less 18,000 expenses on a 900,000 property gives 54,000 net rental income and 6% net yield.
Important notes
Keep operating-expense definitions consistent. Debt service is usually excluded when comparing property returns before financing.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Net rental income | 72000 − 18000 | 54,000 |
| Net yield | 54000 ÷ 900000 × 100 | 6 % |
Frequently asked questions
Can net rental yield be negative?
Yes. If expenses exceed rent, the result reflects an operating loss before financing.
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.