Investment-property yield calculator
Before falling in love with an investment home, check the numbers. The calculator below computes the rental yield — the ratio between the annual rental income and the home price — the basic figure every investment deal is measured by. It's the starting point of the check, not its end.
Rental yield calculator
Yield and cash flow on an investment property — gross, net, and on your equity.
For illustration only · not advice and not a commitment
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What the calculator computes — and what it doesn't
The calculator shows a basic rental yield: the annual rent divided by the home price. That's the accepted measure for quickly comparing properties and areas.
But gross yield is only the beginning. The real — net — yield also accounts for purchase tax and acquisition costs, maintenance and repairs, insurance, periods without a tenant, management fees, tax on the rental income, and if there's a mortgage — the cost of financing. All of these change the picture, sometimes materially.
Yield, leverage and cash flow — three separate questions
In a financed investment deal, three questions must be kept apart: what the yield on the property is (the calculator), what the return on your equity is after leverage (depends on the mortgage terms), and whether the monthly cash flow is positive — that is, whether the rent covers the payment and the expenses, or you'll be topping up out of pocket every month.
All three can point in different directions on the same home. A good deal is one that works on all three tests — or one you enter knowing exactly where it doesn't work and why that's acceptable to you.
Frequently asked questions
What is a good yield for an investment home in Israel?
There's no single right number — the accepted yield varies by area, property type and risk level: properties in high-demand centers usually offer a lower rental yield alongside an expectation of appreciation, and in the periphery the picture is reversed. It's also right to compare the yield to your alternative investments and to the cost of financing, not only to other properties.
Does the calculator account for the mortgage and taxes?
No — it computes a basic rental yield on the property price, deliberately. The cost of financing depends on your specific mortgage terms, and the taxation — on the tax path you choose for the rental income and on your personal circumstances. For a full feasibility check of a financed deal, these are exactly the inputs added in a professional review.