The two yield measures
Gross = annual rent ÷ price × 100; net = (rent − costs) ÷ price × 100The number of rent-paying months can be reduced to model vacancy or missed payments. Simple payback is price divided by annual income after costs.
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Rental yield calculator
Gross yield, net yield and payback time
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HOW IT WORKS
A result to understand, not just read.
Rental yield compares annual rent with the capital tied up in the property. The net figure subtracts the annual costs you enter, but purchase taxes, refurbishment and vacant periods still need to be considered separately.
FREQUENTLY ASKED QUESTIONS
Which price should I use for rental yield?+
Use a consistent capital basis: purchase price at minimum, and ideally include acquisition and initial refurbishment costs when comparing investments.
Does net yield include tax?+
Only if you enter it among annual costs. The calculator does not automatically apply a country-specific rental tax regime.
RESULT GUIDE
How to calculate gross and net rental yield
Gross yield relates annual rent to the purchase price. Simplified net yield subtracts the annual running costs entered before dividing by the same price.
Example: a €90,000 commercial unit
- rent: €700 for 12 months
- estimated annual costs: €1,800
- purchase price: €90,000
Purchase tax, legal fees, initial works and the opportunity cost of capital can reduce the effective return.
How to interpret the result
- Use the same cost perimeter when comparing different properties.
- Test at least one vacant month and a maintenance allowance to avoid an overly optimistic result.
What the estimate does not include
- It is not a property valuation or a guaranteed investment return.
- It does not forecast changes in property value or automatically calculate local property and income taxes.
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