Analysis
Rental Yield Calculator
Calculate gross and net rental yield based on purchase price, monthly rent, and expected vacancy.
- Last updated:
- Editorially reviewed
Inputs
Results
- Gross Rental Yield
- 4.80%
- Annual Gross Rent
- €14.400
- Effective Rent (after vacancy)
- €13.968
- Net Rental Yield (estimated)
- 4.66%
Compared with the market
- Your gross rental yield
- 4.8%
- Median in Berlin
- 4.1%
Your yield is above the median in Berlin: the rent is high relative to the price compared with typical listings. The median comes from current asking prices and asking rents of apartments in the city.
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With the address, size and price: financing, tax, cash flow and nearby comparable rents in one analysis.
Rental yield is one of the most fundamental metrics for evaluating real estate investments. It expresses the relationship between annual rental income and the purchase price of a property. Our rental yield calculator computes both gross and net rental yield while accounting for expected vacancy.
How to Use This Calculator
The rental yield calculator enables a quick assessment of a property's income-generating potential. Follow these simple steps:
- Step 1: Enter the purchase price of the property in euros.
- Step 2: Enter the expected monthly cold rent (Kaltmiete) you would receive.
- Step 3: Estimate the vacancy rate as a percentage, meaning the share of the year in which the unit is expected to bring in no rent.
Understanding the Results
The results provide several yield metrics that are essential for making informed investment decisions:
- Annual Gross Rent: The total of all monthly cold rent payments projected over a full year, without accounting for vacancy or expenses.
- Effective Rent: The actual expected annual rental income after deducting the estimated vacancy period.
- Gross Rental Yield: The ratio of annual gross rent to the purchase price, expressed as a percentage. This serves as an initial benchmark for comparison.
- Net Rental Yield (estimated): The effective rent after vacancy relative to the purchase price. The calculator deducts vacancy only; non-recoverable costs are not included.
Why This Matters for Investors
Rental yield is a starting point for every property investment analysis. A high gross yield alone does not guarantee a profitable purchase, because non-recoverable costs, maintenance, and management can significantly erode the actual return. Look beyond the headline number at rent growth potential, population trends, and the economic strength of the region. The net rental yield, which accounts for vacancy, shows earning power more accurately than the gross figure. For the purchase decision, also factor in all running costs.
Frequently Asked Questions
What is a good rental yield in Germany?
There is no universally valid threshold. Yield depends heavily on location, purchase price, and condition. Compare the rental yield with similar properties in the same area and with your financing costs: if the property's return is below the loan interest rate, debt financing lowers your return on equity.
What is the difference between gross and net rental yield?
Gross rental yield is the annual cold rent divided by the purchase price. A full net rental yield additionally deducts vacancy, non-recoverable operating costs, and management fees, making it the more meaningful metric. This calculator accounts only for vacancy.
What vacancy rate should I assume?
Derive the figure from the local situation: how long do comparable units stand empty between tenancies? Factor in tenant turnover and renovation periods. For conversion: one month without rent per year equals about 8.3%, one week about 1.9%.
These calculations are for informational purposes only. Consult a professional for financial advice.