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Rental yield calculator

Rental yield calculator

Net yield 4.2% gross: 6%
Total investment
€200,000.00
Annual rental income
€10,800.00
Monthly cash flow
€691.67

Gross yield is the annual rent over the price; net yield deducts expenses and purchase costs. It doesn't include the mortgage or vacancy/non-payment. Not financial advice.

This rental yield calculator works out the gross and net yield of buying a property to rent out, from its purchase price, buying costs, monthly rent and annual expenses.

Two ways to measure the same return

Gross yield is a quick, rough estimate: annual rent over price, nothing else. Net yield is more useful for comparing real opportunities, since it accounts for the extra cash you actually put in (buying costs) and the recurring costs that eat into the rent (property tax, HOA fees, insurance, maintenance).

Example

A €180,000 property with €20,000 in buying costs, renting for €900 a month with €2,500 in annual expenses, has a gross yield of 6% and a net yield of about 4.15% — with a positive monthly cash flow of roughly €692 before any mortgage payment.

For guidance only, not financial advice — it doesn’t include the mortgage or vacancy and non-payment risk.

FAQ

What's the difference between gross and net yield?
Gross yield is the annual rent divided by the purchase price alone. Net yield goes further: it divides the rent minus annual expenses by the total investment, including buying costs — so it's a more realistic measure of return.
What counts as an "annual expense" here?
Recurring ownership costs such as property tax, homeowners association (HOA) fees, insurance and maintenance. It doesn't include the mortgage payment, which this calculator deliberately leaves out.
Why isn't the mortgage included in the calculation?
Excluding financing lets you compare a property's own performance against others on equal terms, regardless of each buyer's down payment or interest rate. To see the effect of a mortgage on monthly cash flow, use a dedicated cash flow calculator instead.