Rental Yield on $400,000 Property at $2,500/Month
A $400,000 property at $2,500 per month produces a 7.5% gross rental yield.
How to use this tool
- Enter annual rental income, property purchase price and annual running expenses in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your gross rental yield and the full breakdown beneath it.
Evaluate the rental yield for a $400,000 investment property renting at $2,500 per month with typical annual expenses.
Frequently asked questions
- What is the difference between gross and net rental yield?
- Gross yield = annual rent / property price × 100. Net yield deducts operating expenses before dividing by price. Net yield is a more accurate measure of actual return.
- What rental yield should I target?
- A net yield of 5–8% is generally considered solid for residential rentals. Below 4% may be hard to cash-flow positively. Higher yields often come with higher risk or lower-quality tenants.