Compare gross rental yield with yield after your entered operating expenses. Use the full acquisition cost and expected paid occupancy.
Gross yield = monthly rent × occupied months / acquisition cost × 100. Expense-adjusted yield = (annual rent − entered annual expenses) / acquisition cost × 100.
A property costing 150,000 and renting for 750 for 12 months produces 9,000 rent, or 6% gross yield. After 2,000 of expenses, the yield is about 4.67%.
This is not after-tax investment return. Finance costs, tax, major repairs, transaction costs and capital gains matter if omitted from inputs. Do not subtract the same expense twice. Vacancy can reduce income even when contractual monthly rent is unchanged.
Editorial responsibility: Nicolas Belotti · Methods and testing · Report an error
English edition: 16 September 2026.