Finance
Rental yield
Compare gross and operating rental yield on a property.
Calculators / Finance / Rental property return
Rental property return calculator
Estimate annual property cash flow and cash-on-cash return.
On this page
Effective annual rent25,080
Annual cash flow7,080
Cash-on-cash return9.44%
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How to calculate
Estimate annual property cash flow and cash-on-cash return.
Effective annual rent = rent*12*(1-vacancy/100); Annual cash flow = rent*12*(1-vacancy/100)-expenses; Cash-on-cash return = (rent*12*(1-vacancy/100)-expenses)/down*100
Worked example
Property price: 300000; Cash invested including down payment: 75000; Monthly rent: 2200; Vacancy allowance (%): 5; Annual operating and financing costs: 18000.
Effective annual rent: 25,080 ; Annual cash flow: 7,080 ; Cash-on-cash return: 9.44 %.
Assumptions and limits
Specify whether expenses include financing, tax, maintenance and capital reserves. Property value changes and sale costs are excluded.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Estimate annual property cash flow and cash-on-cash return. The displayed figures use the inputs and formula shown on this page.
When this tool is useful
Use the rental property return to compare a scenario, check an estimate, or verify a manual calculation.
Understanding your inputs
| Input | What to enter |
|---|---|
| Property price | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Cash invested including down payment | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Monthly rent | Enter a number of at least 0 and no more than 1000000000000. |
| Vacancy allowance (%) | Enter a number of at least 0 and no more than 100. |
| Annual operating and financing costs | Enter a number of at least 0 and no more than 1000000000000. |
Frequently asked questions
What should I check before using the rental property return result?
Specify whether expenses include financing, tax, maintenance and capital reserves. Property value changes and sale costs are excluded.
Is this rental property return result exact?
It is exact for the stated mathematical model and entered values. Real-world results can differ when rates, timing, fees, definitions or measurement conditions differ.