Rental yield & cap rate calculator.
Gross yield, net yield, cap rate and cash-on-cash return for any rental or buy-to-let property. Include purchase costs such as closing costs, stamp duty or transfer tax as one figure. Built for real estate investors in the United States, Canada, the UK and Europe. Pick your currency; the math is the same everywhere.
The formula
Worked example
A $250,000 property with $10,000 of purchase costs rents for $1,750 a month. Gross yield is 8.40%. Allow 5% for vacancy and $4,500 a year of running costs and the net operating income is $15,450, a 5.94% net yield and a 6.18% cap rate. With a $187,500 repayment mortgage at 5.5% over 25 years ($13,817 a year), cash flow is $1,633 a year on $72,500 invested.
Questions
What is the difference between gross and net rental yield?
Gross yield is the annual rent divided by the purchase price, before any costs. Net yield subtracts running costs and vacancy, and divides by everything you paid including purchase costs and renovation. Net yield is the one to compare properties with.
Is cap rate the same as net yield?
Close, but not the same. Cap rate is net operating income divided by the purchase price only. Net yield in this calculator divides by price plus purchase costs and renovation, so it is usually a little lower. US investors tend to quote cap rate; UK and European investors tend to quote yield.
What is a good rental yield?
There is no single number. Yields depend on the country, city, property type and interest rates. Compare a property against similar rentals in the same area, and check that the cash flow is positive after the mortgage.
Should I include stamp duty or transfer tax?
Yes, in purchase costs. Stamp duty in the UK, land transfer tax in Canada, transfer tax in the US and registration or transfer taxes across Europe all add to what you paid, so they lower your net yield. Rates and surcharges for additional properties vary; check the current rules where you buy.
How do I track yield across a portfolio?
Store rent, running costs, purchase costs and loan terms as fields on each property record in your CRM, with yield and cash flow as formulas. A portfolio report then ranks properties by net yield every month.
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Last updated October 2026. For planning only, not financial, tax or legal advice. Check figures with your lender, accountant or lawyer.
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