Analysis
Price-to-Rent Ratio Calculator (Kaufpreisfaktor)
Calculate the Kaufpreisfaktor (rent multiplier) from purchase price and annual net cold rent, and check whether a property is priced high or low.
- Last updated:
- Editorially reviewed
Inputs
Results
- Price-to-rent ratio (Kaufpreisfaktor)
- 20,8
- Annual net cold rent
- €14.400
- Gross rental yield
- 4.80%
- Assessment
- Average: in line with the market
Compared with the market
- Your price-to-rent multiple
- 20.8
- Median in Berlin
- 24.6
Your multiple is below the median in Berlin: you pay fewer years of rent than for typical listings. The median comes from current asking prices and asking rents of apartments in the city.
Estimate the value of a specific flatRun the numbers on a real property
With the address, size and price: financing, tax, cash flow and nearby comparable rents in one analysis.
The Kaufpreisfaktor, also called rent multiplier or Mietmultiplikator, is a quick 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. For tenanted properties this is the actual rent, for vacant ones the realistically achievable market rent.
- 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: the calculator rates factors below 20 as attractive, 20 to 25 as average, and above 25 as expensive. This is a simplified classification, and the assessment depends heavily on the location.
Why the price-to-rent ratio is only the beginning
The Kaufpreisfaktor works well 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, which are exactly the factors that determine actual cash flow. Which factor is appropriate 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.
Frequently Asked Questions
What is a good price-to-rent ratio in Germany?
It depends on the location. The calculator rates factors below 20 as attractive and above 25 as expensive, which is a simplified classification. What matters is the comparison with similar properties in the same location.
How are the price-to-rent ratio and rental yield related?
The gross rental yield is the inverse of the ratio: 100 divided by the factor. A factor of 20 equals a 5% gross yield, a factor of 33 roughly 3%.
What rent should I use for vacant properties?
The realistically achievable market rent for comparable flats in the same location, based on the local rent index (Mietspiegel) or current listings. Overly optimistic assumptions produce a flattering factor.
Does the ratio include purchase costs?
No, traditionally only the bare purchase price is used. For a more conservative view you can add transfer tax, notary and agent fees to the price. The factor then rises by the share of the purchase costs: with 10% purchase costs, a factor of 20 becomes 22.
These calculations are for informational purposes only. Consult a professional for financial advice.