How the calculation works
Gross yield = monthly rent × 12 ÷ purchase price. Net yield = [rent × (12 − vacant months) − annual expenses] ÷ (purchase price + additional costs).
Understand the limitations
Simple payback = total acquisition cost ÷ annual net income. Appreciation, financing and taxes are not included unless you include applicable expenses in your inputs. Default values are an arithmetic example, not market estimates.