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Rental Yield Calculator

Annualizes a weekly, monthly or annual rent and computes the gross rental yield on the property value and the net yield after annual expenses and purchase costs, plus the monthly net income.

When to use

You want the yield of a buy-to-let or investment property from its rent and value, in the gross form quoted by agents or the net form after costs.

Do not use when: You need the return on the cash invested with a mortgage (use cash-on-cash-return) or a commercial-style NOI cap rate with vacancy (use cap-rate). Informational only; not financial advice.

Formula

annual_rent = rent_amount × {weekly: 52, monthly: 12, annual: 1}; gross_yield_percent = annual_rent / property_value × 100; net_yield_percent = (annual_rent − annual_expenses) / (property_value + purchase_costs) × 100

Gross yield is the figure usually quoted in listings; net yield deducts running costs and spreads purchase costs over the value. Neither includes mortgage costs, tax or capital growth. Informational mathematics only; not financial advice.

Inputs

Parameter	Type	Required	Description
`property_value`	number	yes	Purchase price or current market value. Range: > 0, ≤ 1000000000000
`rent_amount`	number	yes	Rent charged per rent_period. Range: ≥ 0, ≤ 10000000000
`rent_period`	enum: weekly \| monthly \| annual	default monthly	Period of rent_amount; weekly rent is annualized with 52 weeks.
`annual_expenses`	number	default 0	Yearly owner costs: management fees, insurance, maintenance, rates, vacancy allowance (excluding mortgage interest). Range: ≥ 0, ≤ 1000000000000
`purchase_costs`	number	default 0	One-off acquisition costs (stamp duty, legal fees) added to the value for the net yield. Range: ≥ 0, ≤ 1000000000000

Outputs

Output	Type	Unit	Description
`annual_rent`	number		rent_amount × 52, × 12 or × 1.
`monthly_rent`	number		annual_rent / 12.
`gross_yield_percent`	number	%	annual_rent / property_value × 100.
`net_yield_percent`	number	%	(annual_rent − annual_expenses) / (property_value + purchase_costs) × 100.
`annual_net_income`	number		annual_rent − annual_expenses.
`monthly_net_income`	number		annual_net_income / 12.

Example

500,000 value, 500 per week: {"property_value":500000,"rent_amount":500,"rent_period":"weekly"} → {"annual_rent":26000,"monthly_rent":2166.67,"gross_yield_percent":5.2,"net_yield_percent":5.2,"monthly_net_income":2166.67}

400,000 value, 2,000 per month, 6,000 expenses, 20,000 purchase costs: {"property_value":400000,"rent_amount":2000,"rent_period":"monthly","annual_expenses":6000,"purchase_costs":20000} → {"annual_rent":24000,"gross_yield_percent":6,"net_yield_percent":4.29,"annual_net_income":18000,"monthly_net_income":1500}

GET https://tttkmbb.com/api/v1/calculate/rental-yield?property_value=500000&rent_amount=500&rent_period=weekly

Machine access

API: GET https://tttkmbb.com/api/v1/calculate/rental-yield (query parameters) or POST with a JSON body {"inputs": {...}}
Schema: https://tttkmbb.com/api/v1/calculators/rental-yield · Markdown: https://tttkmbb.com/investing/rental-yield.md · JSON definition: https://tttkmbb.com/investing/rental-yield.json
MCP: server https://tttkmbb.com/mcp, tool run_calculator with calculator_id="rental-yield"
OpenAPI operationId: calculate_rental_yield
Freshness: static. Authentication: none. Rate limit: fair use (see rate limits).

Sources

Wikipedia – Buy to let (rental yield) (reference)
Wikipedia – Capitalization rate (reference)

FAQ

Why 52 weeks and not 52.14?

52 weeks is the convention used by most agents and lenders; multiplying by 365/7 instead would raise the annual rent by about 0.3 %.

What counts as a good rental yield?

It depends on the market and interest rates; a net yield should be compared with the mortgage rate and alternative investments, and gross yields of 3–8 % are typical in many housing markets.

Related calculators

Cap Rate Calculator — NOI-based yield with vacancy and expenses.
Gross Rent Multiplier Calculator — Price divided by annual rent.
Mortgage Payment Calculator — Mortgage cost to compare against the net income.