Rent-to-Price Ratio Calculator
Calculate the rent-to-price ratio for real estate investments. Compare rental yield, cash flow, and investment returns across different properties and markets.
Step 1: Property Details
Understanding Rent-to-Price Ratio
The rent-to-price ratio (also called gross rental yield) measures annual rental income as a percentage of property price. Lower ratios (below 0.5%) suggest premium properties, while higher ratios (above 1%) indicate better cash flow potential.
Step 2: Rental Income Details
About Rental Yield
Gross rental yield = (Annual Rent / Property Price) × 100. Net yield deducts expenses and vacancies. Generally, 6-8% gross yield is considered good, while below 4% may indicate overvalued markets.
Rent-to-Price Ratio Results
Rent-to-Price Ratio (Gross Rental Yield)
Property Market Comparison
| Property Type | Avg Price | Avg Monthly Rent | Gross Yield | Price-to-Rent |
|---|
Cash Flow Breakdown
Rent-to-Price Calculation Formula
Gross Yield = (Annual Rent ÷ Property Price) × 100
Net Yield = [(Annual Rent – Expenses) ÷ Property Price] × 100. Price-to-Rent Ratio = Property Price ÷ Annual Rent. Lower price-to-rent ratios (below 15) suggest better investment opportunities.
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