Rental Yield Calculator
Enter the property's purchase price, monthly rent, and annual costs. Get a calculation of yield percentages and cash flow.
Gross rental yield
Net rental yield
Annual net income
Monthly cash flow
Rental Yield Calculator – Profitability of Property Investment
The rental yield calculator helps assess the profitability of an investment property by calculating gross and net rental yield, monthly cash flow, and payback period.
Gross Rental Yield vs. Net Rental Yield
Gross rental yield is calculated without costs:
Gross rental yield = (Annual rent / Property price) × 100 %
Net rental yield takes into account costs such as maintenance fees, insurance, and repairs:
Net rental yield = ((Annual rent – Annual costs) / Property price) × 100 %
Good Rental Yield
| Net rental yield | Assessment |
|---|---|
| Less than 3 % | Poor – profitability questionable |
| 3–5 % | Reasonable – typical in large cities |
| 5–7 % | Good – desirable level |
| Over 7 % | Excellent – more typical in smaller locations |
Typical Costs
Annual costs for an investment property usually include:
- Maintenance fee – average 3–6 €/m²/month depending on the housing company
- Insurance – about 100–300 €/year
- Vacant months – statistically about 1–2 months per year
- Renovations and maintenance – rule of thumb 1–2 % of property value per year
Taxation of Property Investment
Rental income is taxed as ordinary income in the US, with rates varying by tax bracket. Costs such as maintenance, repairs, and mortgage interest are deductible. More information: IRS – Rental Income
See Also
- Compound Interest Calculator – Calculate long-term investment growth
- Installment Calculator – Calculate mortgage costs