Rental property · net yield

Rental property · net yield: use property cost including acquisition fees, monthly rent, vacancy allowance. Review the formula, worked example and calculation steps.

Inputs

Use the units shown

Scenario estimate using the assumptions shown. Verify costs and rates with your provider; this is not a guaranteed return or lending decision.

RESULT
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Formula & explanation
Net yield = [12×rent×(1−vacancy/100)−annual expenses]/cost × 100

Variables & units

Property cost including acquisition fees
currency · minimum 0.01, maximum 1000000000000
Monthly rent
currency · minimum 0, maximum 1000000000000
Vacancy allowance
% · minimum 0, maximum 100
Annual operating expenses
currency · minimum 0, maximum 1000000000000

Worked example

200,000 cost, 1,500 monthly rent, 5% vacancy and 4,000 expenses gives 6.55%.

Assumptions

Unlevered operating yield; excludes finance, appreciation, sale costs and income tax.

Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.

Practice with an example

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