Cernarus

Rental Yield Calculator

This calculator helps investors estimate rental performance using several common metrics: gross yield, net yield (NOI / value), cap rate, and cash-on-cash return. It adjusts rental income for vacancy and lets you include operating expenses and annual mortgage payments to show financing impact.

Use the tool for preliminary screening and comparison. Results are estimates intended to inform decisions; they are not financial advice. Always verify inputs and consult a qualified accountant, tax advisor or local regulator before acting.

Updated Nov 1, 2025

Yield after operating expenses (also called net operating income yield).

Inputs

Results

Updates as you type

Net yield (%)

403.33%

Net operating income (NOI)

$12,100.00

OutputValueUnit
Net yield (%)403.33%%
Net operating income (NOI)$12,100.00USD
Primary result403.33%

Visualization

Methodology

We compute an effective annual rent by applying the vacancy rate to gross rent. Net operating income (NOI) equals effective rent minus annual operating expenses. Gross yield is effective rent divided by property value. Net yield and cap rate use NOI divided by property value. Cash-on-cash divides annual pre-tax cash flow by cash invested.

Formulas and internal checks follow good data integrity and calculation practices. We reference industry and engineering standards for reliability and auditability, and include explicit caveats about rounding, local rules and tax treatment.

Further resources

External guidance

Expert Q&A

Which metric should I use for quick screening?

Gross yield is quick for initial screening because it requires only rent and price. For a more realistic comparison, use net yield or cap rate, which account for operating costs. If financing matters, use cash-on-cash return to measure return on invested cash.

Does this calculator include tax, depreciation or capital gains?

No. The calculator provides pre-tax operating metrics. Taxes, depreciation, capital gains treatment and local rules vary and materially affect returns. Consult a tax professional for after-tax analysis.

How accurate are the results?

Results are arithmetic estimates based on the inputs you provide. Expect rounding differences and sensitivity to inputs like vacancy and expenses. We recommend sensitivity checks and validating outputs against signed contracts or professional valuations.

Are financing costs always included?

Financing is included only where you provide annual mortgage payments and down payment. Metrics like cap rate and net yield are typically shown on an unlevered (no debt) basis; cash-on-cash explicitly includes leverage.

Can I rely on this for compliance or safety assessments?

No. This tool is for financial estimation only. For regulatory compliance, occupational safety, building codes, or structural assessments consult licensed professionals and authorities.

Sources & citations