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.
Governance
Record e3fa1c069e03 • Reviewed by Fidamen Standards Committee
Yield after operating expenses (also called net operating income yield).
Inputs
Results
Net yield (%)
403.33%
Net operating income (NOI)
$12,100.00
| Output | Value | Unit |
|---|---|---|
| Net yield (%) | 403.33% | % |
| Net operating income (NOI) | $12,100.00 | USD |
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.
F.A.Q.
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
- NIST - Frameworks and Guidance on Data Integrity and Measurement — https://www.nist.gov
- ISO - Standards Catalogue (financial and measurement standards) — https://www.iso.org
- IEEE - Recommended practices for numerical software quality — https://www.ieee.org
- OSHA - Guidance for workplace safety and compliance (for property managers) — https://www.osha.gov
- HUD — FHA Single Family Housing Policy Handbook 4000.1 — https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1
- HUD — Property Valuation and Appraisals (HUD 4155.2) — https://www.hud.gov/sites/documents/4155-2_4.pdf
- Fannie Mae — Selling Guide — https://selling-guide.fanniemae.com/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: e3fa1c069e03What changed (latest)
v1.0.0 • 2025-11-01 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-01 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 1, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-01 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 7f7d865bdda3