Rental yield calculator
Estimate rental yield from purchase price, rent and property expenses.
This choice applies to every calculator; amounts are not converted.
Rental yield
Enter the purchase price, rent and expenses. Results update automatically.
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How does this tool work?
This calculator estimates gross and net rental yield from the total cost of the property, rent and expenses.
Total investment adds purchase price, renovation and acquisition costs.
Gross yield compares annual rent with total investment.
Net yield deducts expenses before comparing net income with the investment.
For a meaningful comparison between properties, use the same rent and expense conventions in every scenario. The calculator deliberately measures the property before financing so you can first assess its underlying economic performance, then model mortgage costs, taxes or vacancy separately when they are relevant to your decision.
How to use this tool
Enter property costs
Enter purchase price, renovation and acquisition costs.
Enter rent
Enter the expected monthly rent excluding charges.
Add expenses
Enter non-recoverable charges, property tax and other annual expenses.
Compare yields
Review gross yield, net yield and annual net income.
Rental yield
Total investment
Total investment = purchase price + renovation costs + acquisition costs
Gross yield
Gross yield = annual rent ÷ total investment × 100
Net yield
Net yield = (annual rent − 12 × monthly non-recoverable expenses − annual property tax − other annual expenses) ÷ total investment × 100
- I
- Total investment
- P
- Purchase price
- W
- Renovation costs
- F
- Acquisition costs
- L
- Monthly rent
- C
- Monthly non-recoverable expenses
- K
- Annual property tax
- A
- Other annual expenses
Use cases
Compare two properties
Compare opportunities using the same method.
Prepare a purchase
Quickly estimate the expected yield.
Measure the impact of expenses
See the difference between gross and net yield.
Examples
Flat bought for €200,000 and let for €900 a month
€10,800 of rent ÷ €225,000 invested = 4.8% gross. After €2,100 of annual costs, €8,700 remains, i.e. 3.87% net.
Input
Purchase price: €200,000; Renovation costs: €10,000; Acquisition costs: €15,000; Monthly rent: €900; Monthly non-recoverable expenses: €50; Annual property tax: €1,000; Other annual expenses: €500Result
Total investment: €225,000; Gross yield: 4.8%; Net yield: 3.87%; Annual net income: €8,700Tips and best practices
- Include renovation and acquisition costs when they are part of your actual investment.
- Use the same expense assumptions when comparing properties so the yields remain comparable.
- Test several rent and expense scenarios to understand how sensitive the yield is to changing assumptions.
Sources and references
Frequently asked questions
What is the difference between gross and net rental yield?
Gross yield uses rent before expenses; net yield deducts the expenses entered.
Are mortgage payments included?
No. This calculation measures the property yield before financing.
Should renovation costs be included?
Yes, when they form part of the actual investment cost.
Does a vacant period reduce rental yield?
Yes. Vacancy reduces rent collected. The tool has no dedicated field, so lower the monthly rent you enter accordingly, for example 900 × 11 ÷ 12 = €825 for one empty month a year.
Why is gross yield calculated on total investment?
The tool divides annual rent by the total investment (purchase price, renovation work and acquisition costs), not by the purchase price alone. The result is slightly lower than in property listings, but it reflects the money actually committed.
What is the difference between net yield and net-net yield?
Net yield deducts non-recoverable charges, property tax and other annual costs. Net-net yield also removes income tax and social charges on rental income, which depend on your tax situation and are not calculated here.
Is the mortgage taken into account?
No. Yield measures the property’s return on the total investment, regardless of how it is financed. Loan interest and repayments belong to cash flow: a profitable property can have negative cash flow if the loan is short or expensive.
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