The results provided by this calculator are for information purposes only and do not constitute legal or financial advice.
The gross rental yield is a simple indicator that compares the annual rent received with the total cost of the investment. It gives a first idea of the return of a rented property, before any deeper analysis. It is often the first figure looked at to quickly compare several properties.
Be careful: the gross yield does not take into account non-recoverable co-ownership charges, property tax, landlord insurance, management fees, taxes, or rental vacancy. The return actually earned (net yield) is therefore always lower than the gross yield.
First add the purchase price and all acquisition-related costs to obtain the total project cost, then compare the annual rent to this cost:
Gross yield (%) = (monthly rent excluding charges × 12) / total acquisition cost × 100
The total acquisition cost includes the purchase price, notary fees, any agency fees, renovation works and furnishing.
For a property bought for €200,000, with €15,000 in notary fees and €10,000 of works, the total acquisition cost is €225,000. With a rent of €800 per month excluding charges, the annual rent is €9,600:
9,600 / 225,000 × 100 = 4.27%
The gross rental yield of this investment is therefore around 4.27%. To refine this estimate, you then need to calculate the net yield by deducting all the charges borne by the landlord.
