Enter Property Details
Example Deals Table
Use this as a quick reference for comparing multiple properties.
| Deal | Purchase Price | Monthly Rent | Occupancy | Effective Gross (Annual) | NOI (Annual) | Net Yield |
|---|---|---|---|---|---|---|
| City Apartment | 250,000 | 1,800 | 95% | 20,520 | 14,950 | 5.72% |
| Suburban House | 310,000 | 2,200 | 92% | 24,288 | 16,880 | 5.11% |
| Small Retail Unit | 180,000 | 1,650 | 90% | 17,820 | 12,740 | 6.37% |
Formula Used
How to Use This Calculator
- Enter your purchase price and one-time acquisition or improvement costs.
- Add monthly rent and any extra monthly income, then set an occupancy rate.
- Fill in annual costs (tax, insurance, maintenance) and monthly owner-paid charges.
- Set percentage-based fees and reserves to reflect ongoing management and capex.
- Optionally enable financing to estimate annual debt service and cash-on-cash return.
- Press Submit to view results above the form, then export CSV or PDF.
Market Signals That Influence Yield
In most rental markets, gross yield moves with rent growth and sale prices. A 5% price jump with flat rent reduces yield by roughly the same proportion. Track comparable rents per square meter and recent closing prices, not list prices, to keep assumptions realistic.
Vacancy, Turnover, and Effective Gross Rent
Effective gross is rent after vacancy. For example, 2,000 monthly rent with 92% occupancy produces 22,080 annual effective gross. A four-week vacancy on a 12‑month lease is about 92.3% occupancy. Use conservative occupancy when tenant demand is seasonal.
Expense Ratios and Net Operating Income
Many stabilized rentals run 25%–45% operating expense ratios, depending on taxes, services, and management. If effective gross is 24,000 and operating expenses are 9,600, the ratio is 40% and NOI is 14,400. The calculator separates fixed costs and percentage fees so you can see which items drive NOI.
Capital Reserves for Long-Term Accuracy
A capex reserve protects returns against large replacements. Setting 5% of effective gross on 24,000 reserves 1,200 per year. Over five years, that is 6,000 to cover paint cycles, appliances, or roof contributions. Without a reserve, net yield can look strong while future cash needs stay hidden.
Financing Sensitivity and Cash-on-Cash
Debt amplifies outcomes. With 70% LTV on a 250,000 purchase, the loan is 175,000. At 7.5% over 20 years, annual debt service is materially higher than at 5.5%. Compare NOI to debt service to avoid negative cash flow, then use cash-on-cash to judge your out-of-pocket return.
Decision Benchmarks and Deal Comparison
Investors often screen deals with a minimum net yield and a minimum cash-on-cash. If two properties both show 6% net yield, the one with steadier occupancy and lower tax volatility is usually less risky. Export CSV results for multiple scenarios, then rank by NOI, cash flow, and downside resiliencepractical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical practical clearly.
FAQs
What is the difference between gross yield and net yield?
Gross yield uses effective gross rent against total investment. Net yield uses NOI, subtracting operating expenses like taxes, insurance, fees, and reserves. Net yield is better for comparing real profitability.
Why does occupancy rate matter if I have a long lease?
Even long leases can have gaps during renewals, repairs, or tenant changes. Occupancy models that friction so your effective gross rent and yields reflect real-world downtime.
Should I include mortgage payments in operating expenses?
No. Operating expenses are property costs excluding financing. Mortgage payments are debt service and are used to calculate cash flow and cash-on-cash return separately.
How do management and letting fees apply in the calculator?
They are calculated as percentages of effective gross rent. This links fees to income, so the estimate adjusts automatically when you change rent, occupancy, or other income.
What does capex reserve represent?
It is a yearly set-aside for replacements and major repairs, such as HVAC, appliances, or exterior work. Using a reserve reduces net yield but improves long-term accuracy.
How can I compare multiple properties quickly?
Run each scenario, export CSV, and sort by NOI, net yield, and annual cash flow. Keep assumptions consistent across deals to make the comparison fair.