Rental yield calculator
What will your rental really return?
Work out gross yield, net yield, cash flow and cash-on-cash return for a North Shore rental in a minute. Change any figure and the results update as you type.
- Includes the costs landlords often miss
- Cash purchase or with a mortgage
- Free, with no sign-up
Reading your results
Four numbers, four questions
Each measure answers a different question about the same property.
Gross yield
The simplest measure: a year’s rent against what the property cost.
Annual rent ÷ price × 100
Net yield (cap rate)
What the property earns after vacancy and running costs, before any mortgage. The fairest way to compare properties.
Net operating income ÷ price × 100
Cash flow
What is left each month after running costs and mortgage payments. Positive cash flow pays you; negative means you top it up.
(Net operating income − mortgage) ÷ 12
Cash-on-cash return
Your annual cash flow against the cash you actually put in, including the down payment and purchase costs.
Annual cash flow ÷ cash invested × 100
Before you trust the number
Costs North Shore landlords often miss
Time between tenants
Even a few weeks empty each turnover comes off the year. Pricing correctly and marketing well keeps the gap short.
The cost of placing a tenant
Since August 1, 2025 a broker fee is paid by whoever hired the broker, so the cost of finding a tenant now sits with the landlord.
Water and sewer
In Massachusetts you can only bill tenants for water through certified submeters, with the terms set out in the lease. Otherwise the bill stays with you.
Heat and common areas
In many two and three-families the owner pays for heat, hallway lighting or shared systems. Check which utilities are on your meter.
Snow and ice
Clearing driveways, walkways and common areas is a winter cost worth budgeting for on the North Shore.
Older homes
Pre-1978 homes may need lead paint work if a child under six moves in, and older roofs, boilers and wiring need a healthy capital reserve.
Improving your return
Four ways to lift your yield
Price from local data
An asking rent set from homes letting nearby avoids both empty months and leaving money on the table.
North Shore Rent IndexKeep good tenants longer
Every renewal avoids a vacancy and a placement cost. Responsive repairs and fair renewals help tenants stay.
Repairs and maintenanceFix small problems early
Regular inspections and preventative work cost less than emergency repairs and protect the property’s value.
What we handleProtect the downside
Cover for lost rent, eviction costs and tenant damage takes the worst case out of your numbers.
Rent protectionQuestions about rental yield
What is the difference between gross and net yield?
Gross yield compares a year’s rent with the property price and ignores costs. Net yield, often called the cap rate, takes off vacancy and running costs such as tax, insurance, repairs and management first. Net yield is the better guide to what a property really earns.
Should I include my mortgage?
Cap rate leaves the mortgage out, so you can compare properties however they are financed. Turn on financing to see your monthly cash flow and cash-on-cash return, which show how the property performs for you with your loan.
What vacancy allowance should I use?
Use your own history if you have it. Without it, many investors plan on around 5% of the year, and more for homes that turn over often or rent seasonally.
How much should I set aside for repairs?
It depends on the age and condition of the property. The calculator separates routine repairs from a capital reserve for big items like roofs and boilers, so you can adjust each for an older or newer home.
Are property management fees tax deductible?
Management fees are generally deductible as an ordinary rental expense in the US. Check the details for your situation with your tax adviser.
Check your numbers with a local expert
Book a free rental evaluation. We will walk the property with you, recommend a rent we would be confident listing at and talk through the running costs that apply to your home.