Free rental yield calculator

Calculate rental yield in seconds.

Enter the purchase price and the monthly rent — Nestlytics instantly shows the gross rental yield, so you can compare properties at a glance.

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Want the full picture? The main Nestlytics calculator also includes mortgage payments, vacancy, management fees and closing costs.

The rental yield formula

Gross rental yield compares a property's yearly rent to its purchase price:

Gross yield = (Monthly rent × 12) ÷ Purchase price × 100

Because it uses only two numbers, gross yield is the fastest way to screen properties. It tells you how much income each euro or dollar of purchase price produces per year — before any costs.

A worked example

Say you are looking at an apartment listed at €240,000.00 that rents for €1,200.00 per month:

  1. Annual rent: €1,200.00 × 12 = €14,400.00
  2. Divide by the price: €14,400.00 ÷ €240,000.00 = 0.06
  3. Convert to a percentage: 0.06 × 100 = 6.0% gross yield

Try those numbers in the calculator above — then change the rent or price to see how sensitive the yield is.

Gross yield vs net yield

Gross yield

Rent only, no costs. It is ideal for quickly comparing listings in the same area, but it overstates what you keep — every property has empty months, repairs and fees.

Net yield

Annual rent minus vacancy, management, maintenance, insurance, taxes and other costs, divided by the price. It is lower, but far more realistic. For the full picture — including your mortgage — use the Nestlytics cash flow calculator, which also shows cash-on-cash return on the money you actually invest.

How to compare rental yields fairly

A yield figure is only useful next to another one. Before you rank properties by gross yield, make sure you are comparing like with like.

Use the same rent basis

Enter the rent you can realistically achieve today for each property — not an asking rent for one and a current tenant's rent for another. A small difference in monthly rent shifts the yield noticeably on lower-priced homes.

Use the full purchase price

Compare yields on the price you would actually pay. If one property needs renovation before it can be let, a higher headline yield may disappear once that work is added to the cost.

Compare similar properties

Cheaper properties often show higher gross yields, but they can come with higher running costs or more frequent tenant turnover. Gross yield works best when comparing homes of a similar type and area.

Shortlist, then check net figures

Use gross yield to narrow a list quickly. For your final choices, enter vacancy, management, maintenance, insurance and taxes in the full calculator to see net cash flow and cash-on-cash return.

Ready for the detailed numbers? Open the Full Property Calculator.

Frequently asked questions

What is rental yield?

Rental yield shows how much rent a property returns each year as a percentage of what it cost. It is the standard way to compare the income potential of different properties, regardless of their size or price. A flat that costs €200,000 and rents for €1,000 a month has the same gross yield as one costing €100,000 and renting for €500 a month: 6%.

How do I calculate gross rental yield?

Multiply the monthly rent by 12 to get the annual rent, divide it by the purchase price, and multiply by 100. For example: €1,500 × 12 = €18,000 per year; €18,000 ÷ €300,000 × 100 = 6% gross yield. The calculator above does this for you as you type.

What is the difference between gross and net rental yield?

Gross yield ignores all costs — it is just rent versus price. Net yield subtracts the costs of owning the property: vacancy, management fees, maintenance, insurance, taxes and other expenses. Net yield is always lower and much closer to what you actually keep. Use gross yield for quick comparisons and net yield (or cash flow) before you commit to a purchase.

What is a good gross rental yield?

There is no single good number — it depends on the market, interest rates and expected price growth. As a rough guide, yields below 4% are common in expensive city centres where buyers bet on appreciation, while 6–8% or more is typical in cheaper areas that may carry higher vacancy and repair risk. Always compare properties within the same market, and check net yield too.

Does rental yield include my mortgage?

No. Rental yield — gross or net — measures the property's income against its price, independent of how you financed it. Your mortgage payment affects your cash flow and cash-on-cash return instead. The main Nestlytics calculator includes mortgage payments, vacancy, management fees and reserves so you can see those figures too.

Gross rental yield
7.20%
Full Property Calculator