Gross yield is the quick screen; net yield is the honest number. This calculator shows both at once so you can see how much the expenses change the story.
Rental yield is the simplest income measure in real estate, common in international markets and quick enough to run in your head while browsing listings.
Gross yield = annual rent ÷ purchase price. A $250,000 property renting for $2,100 a month collects $25,200 a year, a 10.08% gross yield, which is the same thing as 0.84% of the price a month.
Net yield = (annual rent minus operating expenses) ÷ purchase price. Subtract the $9,500 of taxes, insurance, vacancy and upkeep in the default example and the same property nets $15,700, a 6.28% net yield. Net yield is essentially a simplified cap rate, and it is the honest one of the pair.
The classic 1% rule (monthly rent at least 1% of price) is just a 12% gross yield restated. Both are screens, not verdicts: they ignore financing, expenses that vary wildly by property age, and taxes that get reassessed when you buy. Use yield to rank markets and listings quickly, then run the survivors through a full analysis.
| Gross yield | The same thing monthly | Where you usually see it |
|---|---|---|
| Under 6% | Under 0.50% of price | Expensive coastal metros; the bet is appreciation, not income |
| 6% to 9.6% | 0.50% to 0.80% | Where most US listings sit in 2026. Cash flow at common rates usually needs a lower price or a bigger down payment |
| 9.6% to 12% | 0.80% to 1.00% | The band where many workable 2026 cash-flow deals live. Worth a full analysis |
| 12% or higher | 1.00% or more | Passes the old 1% rule. Rare in 2026, so verify the rent and ask why the price is that low |
The middle column is the same number the 1% rule calculator reports, because gross yield is just monthly rent-to-price multiplied by twelve. The two tools read a property the same way.
A yield well above 12% usually has a reason behind it: weak demand, high vacancy, deferred maintenance, or taxes and insurance that eat the difference. And no gross yield, however healthy, sees the financing. At 2026 rates that is what decides whether the deal actually cash flows, which is why a promising screen is the start of the work rather than the end of it.
The free DealGauge calculator grades any rental A to F across cash flow, cash-on-cash, financeability and cap rate, then solves the most you could pay and still hit your targets. No account, no email, no property limit.
Grade a deal freeScreen with gross because it is fast, decide with net because it is real. If someone quotes you only gross yield on a property they are selling, ask what the expenses are.
Net yield and cap rate are close cousins; both divide income after expenses by price. Cap rate uses a stricter NOI definition. Gross yield ignores expenses entirely.
Property taxes, insurance, expected vacancy, maintenance, management, and any HOA fees. Leave out the mortgage; yield, like cap rate, is a financing-free measure.
This is one metric. The free calculator grades the whole deal A to F after every real expense and shows your walk away price. No account, nothing stored.
New to rentals? The free beginner guide, checklist and market report are on the homepage.
Related: The 1% rule, explained · 1% rule calculator · Cap rate calculator
General information and educational content only, not investment, tax, or legal advice. Benchmarks are common rules of thumb, not guarantees or projected results. Results are estimates from the numbers you enter. Verify every figure and consult a qualified professional before purchasing any property.