The Kaufpreisfaktor — also called rent multiplier or Mietmultiplikator — is the quickest metric for judging a property's price: it tells you how many years of net cold rent the purchase price equals. A factor of 25 means the purchase price is 25 times the annual net cold rent. Our calculator determines the factor and the gross rental yield in one step and interprets the result.
How to use this calculator
You only need two values for the price-to-rent ratio:
- Step 1: Enter the property's purchase price (excluding purchase costs).
- Step 2: Enter the monthly net cold rent — the actual rent for tenanted properties, or the realistically achievable market rent for vacant ones.
- Step 3: Read off the factor, gross rental yield and assessment.
Understanding the results
Factor and yield are two sides of the same coin:
- Price-to-rent ratio: purchase price divided by annual net cold rent. The lower the factor, the faster the purchase price is recouped through rent.
- Gross rental yield: the inverse of the factor (100 / factor). A factor of 20 equals a 5% gross yield, a factor of 25 only 4%.
- Assessment: as a rule of thumb, factors below 20 are considered attractive, 20 to 25 average, and above 25 expensive — though this depends heavily on the location.
Why the price-to-rent ratio is only the beginning
The Kaufpreisfaktor is excellent for quickly pre-sorting listings, but it does not replace a full calculation. It ignores purchase costs, maintenance, non-recoverable operating costs, vacancy and financing — exactly the factors that determine actual cash flow. In metropolitan areas like Munich or Hamburg, factors above 30 are common, while properties below 20 can be found in secondary cities — the 'right' factor depends on location quality, rent growth potential and condition. Use the factor as a first filter, then run interesting properties through the rental yield, cash flow and ROI calculators for a complete picture.
Tips
- •Always calculate with the net cold rent — utility and heating costs do not belong in the calculation.
- •For tenanted properties, check whether the current rent is below market: a high factor on an artificially low rent can hide potential.
- •Always compare the factor with similar properties in the same location, not with national averages.