Comprehensive Guide
Learn more in our Investing Guide.
How it works
Gross yield = annual rent / property value. Net yield subtracts expenses for a more accurate picture of your actual return. Investing is how you make your money work for you. While saving protects your money from inflation, investing grows it. The stock market has returned an average of 10 percent per year over the past century, though returns vary significantly year to year. The key to capturing these returns is time in the market — not timing the market. Investing is how you make your money work for you. While saving protects your money from inflation, investing grows it. The stock market has returned an average of 10 percent per year over the past century, though returns vary significantly year to year. The key to capturing these returns is time in the market — not timing the market. Investing is how you make your money work for you. While saving protects your money from inflation, investing grows it. The stock market has returned an average of 10 percent per year over the past century, though returns vary significantly year to year. The key to capturing these returns is time in the market — not timing the market.Tips
- Start with the default values to see a baseline result, then change one input at a time to understand which factor matters most for your outcome.
- Replace every default with your actual number — estimates and rules of thumb produce estimates, not answers. Pull your real figures from pay stubs, statements, or account dashboards.
- Use a conservative return rate (5-6% rather than the historical 10%) for planning purposes. Markets have long flat stretches, and planning on the average sets you up for a shortfall.
Frequently asked questions
What is a good rental yield?
A good gross rental yield is typically 6-10% depending on location. Net yield of 4-7% is considered strong after accounting for expenses, vacancy, and management.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.
What should I enter for property value?
Enter your actual property value value. The default of 300000 dollars is a common starting point, but replace it with your real figure for an accurate result.