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Rental yield calculator

Work out the gross and net yield of buying a home to rent it out.

What you pay for the property.
Taxes and purchase costs (transfer tax/VAT, notary, registry…). Usually 10-12% of the price.
The rent you would charge each month.
Allowance for empty or unpaid months, as a % of the year (5% ≈ half a month unpaid).
The annual property tax you pay to the town hall.
Monthly homeowners' association fee.
Home insurance and, if you take it, rent-default insurance.
Expected repairs and maintenance per year (a common rule is ~1% of the price).
Net yield
4.41%
Gross yield
6%
Monthly cashflow
€808
Effective income
€11,400
Annual expenses
€1,700
Net annual income
€9,700

Information, not tax or financial advice.

How the rental yield calculator works

Buying to let has two yields: the gross (rent against price) and the net (after costs), which is the one that really matters.

How to read the result. The gross is potential annual rent over price. The net subtracts a vacancy/non-payment allowance and itemizes the recurring costs — property tax, community fees, insurance and maintenance — and is computed on the total investment (price + purchase costs).

Worked example (default values). A €200,000 flat (+€20,000 purchase costs), let at €1,000/month, with 5 % vacancy and yearly costs of €400 property tax, €50/month community fees, €200 insurance and €500 maintenance:

  • Potential income: €12,000. Gross: 12,000 / 200,000 = 6 %.
  • Effective income (−5 % vacancy): €11,400.
  • Yearly costs: 400 + 600 + 200 + 500 = €1,700.
  • Net: 11,400 − 1,700 = €9,700 (about €808/month cashflow). Net yield: 9,700 / 220,000 ≈ 4.41 %.

An important note. The net yield is the honest figure: it includes property tax, community fees, insurance, maintenance and empty months. It excludes appreciation and income tax on rental income (which has its own primary-residence reduction).

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