Rental yield calculator
Does the purchase add up? Enter the price, the rent and your monthly costs — you get gross and net yield, the payback period and monthly cash flow, mortgage included.
Inputs
Include tax, notary, agency and renovation — this is what actually left your pocket.
Share of the year the flat sits empty. One empty month a year is about 8%.
Insurance, reserve fund, building manager, land use charge, maintenance. Not the utilities the tenant pays.
Optional. It changes your cash flow, not the property's yield.
Result
After costs and the mortgage payment, before tax.
The yield is calculated before tax. Use the rental income tax calculator to see what is left after it. Rental income tax
Gross vs net yield
Gross yield is the annual rent divided by the purchase price. Handy for comparing listings quickly, but it says nothing about costs.
Net yield first subtracts vacancy and the landlord's costs. The gap between the two is often one to two percentage points — and that gap decides whether the purchase is any good.
Which costs belong in the calculation
Reserve fund, insurance, building manager, land use charge and maintenance. For maintenance, roughly one month's rent a year is a sane rule — boilers and washing machines break on their own schedule.
Leave out the utilities the tenant pays, they are not your cost. Do count tenant turnover: empty weeks and a repaint happen every few years.
What the payback period means
Payback is the purchase price divided by annual net income: how many years the property needs to repay you if rent and costs stay put. 20 years corresponds to roughly a 5% net yield.
It ignores price growth, inflation and mortgage repayment — it measures the rent, not the whole investment.
Frequently asked questions
What counts as a good yield?+
It depends on location and risk, so there is no single number. Calculate the net yield and compare it with other investments and with your mortgage rate — if the net yield is below the interest rate, the rent only carries the purchase on paper.
Should purchase costs go into the price?+
Yes. Transfer tax, notary, agency fees and the initial renovation are part of what you invested. Leaving them out makes the yield look higher than it is.
How does a mortgage fit in?+
Enter the monthly payment: it lowers your cash flow but does not change the property's yield. Yield measures the property, cash flow measures your wallet.
Why is net yield so much lower than gross?+
Because gross assumes full occupancy and no costs. Subtract empty months, landlord costs and tax and you get the real picture — usually a fair bit lower.
Other free tools
Rental income tax
25% on a base reduced by 10% standardised expenses.
Utility cost split
Split a bill between tenant and landlord — by consumption, fixed or percentage.
Free Excel template for rent tracking
Working formulas for rent, costs and a yearly summary with estimated tax. Download and use it today.