Rental Yield Calculator
Rental yield calculator: gross rental yield of a property from monthly rent and purchase price, plus the price-to-rent multiple.
y = 12 · RP
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
Gross rental yield = 12 × monthly rent ÷ purchase price. It ignores costs such as taxes, insurance, maintenance and vacancies, which typically lower the net yield by 1–2 points.
The price-to-rent multiple shows how many years of rent equal the purchase price.
Estimates for information only, not financial advice.
Formula
y = 12 · RP
| Symbol | Quantity | Units |
|---|---|---|
| R | Monthly rent | $, €, £ |
| P | Purchase price | $, €, £ |
| y | Gross rental yield | %, × |
Worked example
Given: R = 900.00 $ · P = 180,000.00 $
y = 12 · RP
Result: y = 6 %
Frequently asked questions
What is the yield of a $180,000 home rented for $900 a month?
12 × 900 ÷ 180,000 = 6 % gross.