Rental Property ROI Calculator
See the real payback of a rental — after taxes, maintenance, vacancy and management, not the flattering gross number.
Your real return
Gross yield 7.2% → net 4%. Real payback ≈ 24.9 years.
Where the rent goes
How it's calculated
How is rental property payback calculated?
We take the annual rent, subtract the vacant months, and deduct the owner's costs — rental tax, owner-paid utilities, a maintenance reserve, and management. What's left is net income. Payback is the property price divided by that annual net income.
What's the difference between net and gross yield?
Gross yield is annual rent divided by the price. Net yield is based on income after all costs, so it's lower. Net yield reflects what the property actually earns.
Which costs should I include?
Rental income tax, utilities you pay as the owner, a reserve for repairs and upkeep, vacancy (months without a tenant), and a management fee if you rent through an agency.
Why is the real payback longer than it looks?
Costs and vacancy take a share of the rent, so you keep less than the full amount. Counting only price and rent makes the payback look shorter than it really is.