Property & Housing

Rental yield calculator

The calculator shows you how the purchase price, rent, additional costs and ongoing costs interact.

Updated on Apr 21, 2026 Calculator, calculation path and examples on one page

Back to category: Property & Housing

Calculator

Reset Load example

Calculation path

Step by step

  1. Annual rent

    Formula: Monthly rent × 12

    Result: €48,000.00

  2. Gross return

    Formula: Annual rent / purchase price

    Result: 16.00%

  3. Total investment

    Formula: Purchase price + additional purchase costs

    Result: €333,000.00

  4. Net rental income

    Formula: Annual rent - non-allocable costs

    Result: €42,000.00

  5. Net return

    Formula: Net rental income / total investment

    Result: 12.61%

Instructions

How to use this calculator correctly

Input

  • Enter the purchase price, additional costs, monthly rent and non-allocable annual costs.

Read the result

  • The net return is usually more important for the classification than the gross return.
  • The purchase price factor helps when comparing locations.

Practical use

  • Additionally, check financing, vacancies, renovation needs and tax effects.

Related guide: Understanding property purchasing with financing, additional costs and property taxes

Examples

Typical calculations

300,000 euros, 1,100 euros basic rent.

condominium

Net rental yield: 3.45%

Load this example

Higher rent, higher costs.

Apartment building

Net rental yield: 4.73%

Load this example

More ongoing costs reduce the net return.

Higher maintenance

Net rental yield: 2.60%

Load this example

FAQ

Frequently asked questions

What is the difference between gross and net returns?

The gross return only works with the purchase price and rent, the net return takes additional costs into account.

What costs should I realistically estimate?

Administration, non-allocable operating costs, reserves and minor maintenance are typical.

What does the purchase price factor mean?

It shows how many annual rents are mathematically included in the purchase price.

Is a high return always good?

Not automatically. Condition, location, rental risk and financing are just as important.

Can I also use the calculator for condominiums?

Yes, this is where the net return is often more meaningful than the gross return.

Related calculators

Continue seamlessly

Property tax calculator

Calculate property tax according to the federal model roughly from the property tax value, measurement number and assessment rate.

Sources and notes

Rule status and context

Formulas
Gross return = annual rent / purchase price; Net return = (annual rent - costs) / total investment.