Rental Yield Calculator
A home that rents for 3,000 a month does not earn 36,000 a year. Empty months, repairs, fees and tax come off first, and a mortgage changes the picture again. Enter the price and the rent of an apartment or a house to see what you would really earn, and the highest price that still gives the yield you want.
The property
What a tenant would pay for this property today. Check similar listings.
Notary, transfer duty, land registry, agency. Filled in for the market you chose.
One-off spend before the first tenant moves in.
Running costs and tax
Time between tenants. Half a month a year is a common assumption.
Repairs, appliances, repainting. Common rules of thumb: 1% a year for an apartment, more for a house (roof, facade, heating).
Local property tax plus home insurance.
Repair fund or building fees the tenant doesn't cover. Usually 0 for a house, or if the tenant pays everything.
Agency fee if someone else manages the property. 0 if you do it yourself.
Income tax as a share of the rent you collect.
Enter the tax on rental income in your country as a share of the rent you collect.
Financing
- Gross yield
- 7.8%
- Net yield
- 4.83%
- Payback
- 20.7 years
- The net yield of 4.83% is above the 3% safe alternative, before any change in the property's price.
| Rent if let all year | $15,600 |
|---|---|
| Empty months | −$650 |
| Running costs | −$5,000 |
| Net income | $9,950 |
| Total invested (price, costs, renovation) | $206,000 |
What price makes sense?
Starts at the typical yield for the area you chose.
What your money would earn with almost no risk, such as a government savings bond.
For a 5% gross yield at this rent, pay at most $312,000.
For a net yield equal to the 3% safe alternative, pay at most $292,176, with the costs above.
A planning aid, not financial advice or a valuation. Income only: price changes are not included. Tax rules change and depend on your situation; check yours with an accountant.
How to check a buy-to-let deal
- Choose the market and the property type, then enter the asking price and the rent similar properties are let for today. Check real listings, not the seller's estimate.
- Review the running costs. The defaults are common rules of thumb; replace them with real figures from the building and your insurer if you have them.
- Compare the net yield with the safe alternative. If a government bond pays about the same, the property has to earn its extra work and risk. Turn on the mortgage to see your monthly cash flow.
Expecting the price to rise as well? Model the loan, rate shocks and the full cost of buying in our Mortgage Reality Check
Want to keep your savings, investments and debts in one place, privately on your phone? See Volora, the net worth tracker
Guides on this topic
- How to Calculate Rental Yield (and What It Leaves Out)
Gross yield, net yield and cash flow with a mortgage, worked through for flats in Bucharest and Budapest: what rent leaves after vacancies, upkeep and tax.
- How to Calculate Your Net Worth: A Step-by-Step Example
Net worth is what you own minus what you owe. How to add it up step by step, what to count, liquid net worth, debt-to-asset ratio, and why the trend matters.