How to use it
- Type the Property price: the amount you paid, or the value you are comparing with.
- Enter the Rent received in a year: twelve months of rent.
- Enter the Running costs in a year, or 0 if you want the gross figure only.
- Read the Gross yield and Net yield, then open How the figures are worked out to check each step.
How the yields are calculated
Gross yield is the yearly rent divided by the price, as a percentage. It counts no costs. Net yield first takes the yearly running costs off the rent, then divides what is left by the same price. Both use yearly figures, so enter a full year of rent and costs.
gross yield = yearly rent ÷ price × 100
net yield = (yearly rent − yearly running costs) ÷ price × 100
yearly income after running costs = yearly rent − yearly running costs- Use the same price basis for every property you compare.
- The net yield is negative when the running costs are larger than the rent.
What running costs include
The Canada Revenue Agency's guide to rental income says that you can deduct "any reasonable expenses you incur to earn rental income". Its list of expense categories includes advertising, insurance, property taxes, repairs and maintenance, management and administration fees, utilities and wages, among others. The guide also lists interest and bank charges; this calculator leaves financing costs out, so enter them only if you want a figure after your loan interest.
What this calculator does not include
- Months without a tenant, unless you reduce the yearly rent yourself.
- Tax on rental income, which depends on the rules where you live.
- Mortgage payments, the price changes of the property, and the costs of buying and selling it.
Worked example: 300,000 price, 18,000 rent, 3,600 running costs
Gross yield is 18,000 ÷ 300,000 × 100 = 6%. Running costs of 3,600 a year leave 14,400, so the net yield is 14,400 ÷ 300,000 × 100 = 4.8%.
| Figure | Result |
|---|---|
| Gross yield | 6% |
| Yearly income after running costs | 14,400.00 |
| Net yield | 4.8% |
Frequently asked questions
What is rental yield?
Rental yield is the yearly rent from a property as a percentage of its price. The gross yield uses the rent alone; the net yield also takes off the running costs.
What is the difference between gross and net rental yield?
The gross yield ignores running costs, so it is quick to compare but overstates what you keep. The net yield subtracts the yearly running costs first, so it is closer to the income you keep before tax.
Should I include my mortgage payments in the running costs?
The calculator leaves financing costs out, so the yields compare properties as they are let. If you want a cash figure after your loan, add the yearly interest to the running costs yourself and say so when you report the result.
Is a higher yield always better?
Not by itself. A yield does not show the risks of a property, such as months without a tenant, repairs or a rent that falls. Compare yields on the same basis and look at the risks too.
Is this financial advice?
No. The calculator does the arithmetic on the figures you enter and is not financial or property advice. Speak to a qualified adviser before you buy or let a property.
Does the calculator keep what I type?
No. The figures are worked out in your browser. Nothing you enter is sent to us or stored.
Sources
Figures and text last checked on Thursday, November 12, 2026.