Rental Yield Calculator
Is your rental property a good investment? Enter the property value, monthly rent, annual costs (taxes, charges, insurance) and expected vacancy to instantly calculate gross yield, net yield, monthly cash flow and payback period. A net yield above 5% is generally considered good in most markets.
Frequently Asked Questions
A gross yield of 5–8% is generally considered good. Net yield above 4–5% is solid for most markets. High-demand city centers often have lower yields (3–4%) due to high property prices.
Gross yield ignores all costs. Net yield deducts annual costs (property tax, maintenance, insurance, management fees, vacancy). Net yield gives a realistic picture of actual return.
How this calculator works
Formula explanation
**Formulas:** Gross Yield = (Monthly Rent × 12 / Property Value) × 100 | Net Yield = ((Annual Rent − Annual Costs) / Property Value) × 100 | Payback = 100 / Net Yield
Worked example
**Example:** Property: €250,000, Rent: €1,200/month, Costs: €3,000/year. Gross yield = 5.76% | Net yield = 4.56% | Monthly net cash flow: €950.
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