Rental Yield vs Cap Rate
Rental yield often starts with rent relative to price. Cap rate uses net operating income relative to property value.
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Use rental yield for quick income screening. Use cap rate for operating-income-based valuation.
Rental yield is useful at the top of the funnel.
Cap rate is better after expenses and vacancy are known.
Gross rental yield can overstate attractiveness if expenses are high.
Two rentals with same rent
Two homes may each rent for $2,000 per month, but the one with higher taxes, insurance, and maintenance will show a lower cap rate even if gross rental yield looks similar.
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When should I use Rental Yield vs Cap Rate?
Use rental yield for quick income screening. Use cap rate for operating-income-based valuation.
Which calculator should I open next?
Start with Rental Yield Calculator, then use the related calculator workflow to validate the result from another angle.
Use this guide with the full Rental Property Calculators
Return to the hub to compare related calculators, export report workflows, and move into adjacent guide pages.