Rental yield calculator

How much does a let property earn against what it costs to buy? This tool answers that with three unlevered figures: the gross rental yield, the net rental yield and the gross rent multiplier. They are worked out purely from your own numbers. The methodology and results below explain how each figure is built and exactly what you enter. Everything runs in your browser.

Your result

–

–Gross rental yield
–Net rental yield
–Gross rent multiplier

Intermediate values
Item	Value
Annual rent	–
Effective annual rent (after vacancy)	–
Acquisition costs	–
Investment base	–
Net annual income	–

This calculator needs JavaScript because the calculation runs entirely in your browser – so your inputs never leave your device. Two worked examples are shown further down this page.

What your result means

The cards give the gross rental yield, the net rental yield and the gross rent multiplier, and the table beneath them lists the intermediate values: annual rent, effective annual rent, acquisition costs, investment base and net annual income. A negative net annual income is shown as such, a sign that the running costs exceed the rent received. Whether a yield is adequate for you rests on things this unlevered model does not weigh: financing, taxes, location, condition and your own goals.

How this calculator works

The gross rental yield is the annual rent divided by the purchase price, shown as a percentage, and the annual rent is simply the monthly rent times twelve. Enter the rent on its own: the amount you receive before any running costs you recharge to tenants.

The net yield begins from that same rent but takes two things off it. An assumed vacancy rate trims the annual rent to an effective figure (annual rent × (1 − vacancy/100)), and the yearly non-recoverable costs are then deducted to leave the net annual income. Non-recoverable costs are outgoings you cannot recharge to tenants, such as a maintenance reserve or management fees; lost rent is already captured by the vacancy rate, so leave it out here rather than count it twice. A negative net annual income is a valid result, not an error: it simply means the costs outweigh the rent coming in.

The net yield then relates that net annual income to the investment base: the purchase price plus acquisition costs (price × acquisition-cost rate/100) plus any additional upfront costs. Because vacancy and upfront costs both bite, the net yield sits below the gross yield.

The gross rent multiplier divides the purchase price by the annual rent, so it reads as the price expressed in years of rent, the same thing as 100 divided by the gross yield in per cent. A multiplier of 26, for instance, means the price equals 26 annual rents. With no rent the multiplier is undefined and shown as unavailable. The figures are held unrounded and rounded only for display.

Formula and variables

Ar = Mr · 12Er = Ar · (1 − V / 100)Ac = P · c / 100B = P + Ac + UNi = Er − Cyg = Ar / P · 100yn = Ni / B · 100M = P / Ar

P: purchase price of the property
Mr: monthly rent (base rent, excl. running costs)
Ar: annual rent (Mr · 12)
V: assumed vacancy rate, in per cent
Er: effective annual rent after vacancy
c: acquisition-cost rate, in per cent
Ac: acquisition costs in money
U: additional upfront costs (optional)
B: investment base (P + Ac + U)
C: non-recoverable costs per year
Ni: net annual income (may be negative)
yg: gross rental yield, in per cent
yn: net rental yield, in per cent
M: gross rent multiplier

Worked examples

Example 1: gross and net yield with vacancy

Example inputs
Purchase price	€250,000.00
Monthly rent	€800.00
Vacancy rate	5%
Non-recoverable costs per year	€1,500.00
Acquisition-cost rate	10%
Additional upfront costs	0

Example results
Gross rental yield	3.84%
Net rental yield	2.77%
Gross rent multiplier	26.04
Annual rent	€9,600.00
Effective annual rent	€9,120.00
Acquisition costs	€25,000.00
Investment base	€275,000.00
Net annual income	€7,620.00

The annual rent is 12 · €800.00 = €9,600.00; divided by the €250,000.00 price that is a gross yield of 3.84%. A 5% vacancy lowers the rent to €9,120.00, and after €1,500.00 of non-recoverable costs the net annual income is €7,620.00. Relative to the investment base of €275,000.00 (price plus €25,000.00 acquisition costs) that is a net yield of 2.77%. The multiplier of 26.04 means the price equals 26.04 annual rents.

Example 2: with additional upfront costs

Example inputs
Purchase price	€300,000.00
Monthly rent	€900.00
Vacancy rate	10%
Non-recoverable costs per year	€2,000.00
Acquisition-cost rate	12%
Additional upfront costs	€20,000.00

Example results
Gross rental yield	3.60%
Net rental yield	2.17%
Gross rent multiplier	27.78
Annual rent	€10,800.00
Effective annual rent	€9,720.00
Acquisition costs	€36,000.00
Investment base	€356,000.00
Net annual income	€7,720.00

12 · €900.00 = €10,800.00 annual rent gives, at €300,000.00, a gross yield of 3.60%. After a 10% vacancy (€9,720.00) and €2,000.00 of costs the net annual income is €7,720.00. The investment base is €300,000.00 plus €36,000.00 acquisition costs plus €20,000.00 additional upfront costs = €356,000.00, so the net yield is 2.17%. The gross rent multiplier is 27.78.

Assumptions

Price, rent and costs are constant figures in the same currency; the rent is scaled linearly to twelve months.
Vacancy and non-recoverable costs are your own assumptions; the calculator does not estimate anything for you.
The yield is unlevered (without financing): it relates to the full investment base, not to equity employed.

Limitations of this calculator

Unlevered: no financing, no loan, no interest or repayment effect, and no equity or cash-on-cash return.
No taxes, no depreciation, no price appreciation or decline and no rent growth over time.
No market data and no statement on which yield is "good", "attractive" or "sufficient"; no property, purchase or investment recommendation.
No guarantee that the cost types are complete; your inputs are not stored. All results are approximate and provided without guarantee.

Common misconceptions

Folding acquisition costs into the price: The purchase price is the property price alone; enter the acquisition costs as a rate. Otherwise you count them twice.
Confusing gross and net: The gross yield ignores vacancy, running costs and upfront costs. The net yield includes them and is usually lower.
Entering rent including running costs: Enter the base rent. Recoverable running costs do not belong in a yield calculation.
Reading the multiplier as a verdict: The gross rent multiplier only tells you how many years of annual rent the price equals, that is, 100 divided by the gross yield in per cent. It is not a judgement of whether a purchase is cheap or expensive.

Frequently asked questions

What is the difference between gross and net rental yield?

The gross yield is annual rent divided by purchase price. The net yield also accounts for vacancy, non-recoverable costs and the acquisition costs: it relates the net annual income to the whole investment base and is therefore usually lower.

What are non-recoverable costs?

These are costs you cannot recharge to tenants, for example a maintenance reserve or property-management fees. Recoverable running costs are not included, and lost rent belongs in the vacancy rate rather than here.

What does the gross rent multiplier mean?

The gross rent multiplier is the purchase price divided by the annual rent. A multiplier of 26 means the price equals 26 annual rents. Arithmetically that is 100 divided by the gross yield in per cent, not a judgement of whether a purchase is cheap.

Does the calculator include my financing?

No. The calculation is unlevered: it ignores financing, with no loan, interest or repayment, and no equity or cash-on-cash return. Taxes, depreciation and appreciation are also excluded. For a rent-versus-buy comparison there is a separate calculator.

Sources and further reading

Official and independent sources on this topic. The links open each website in a new tab; no content is loaded from them into this page.

Affordable Housing DatabaseOECDInternational housing indicators for context on housing costs and rents; background only, not a yield benchmark.
Betriebskostenverordnung (BetrKV)German Federal Ministry of Justice (gesetze-im-internet.de)Defines which running costs a landlord may pass on in Germany: the basis for distinguishing non-recoverable costs.

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Last reviewed: 23/09/2026 · All calculations run in your browser – inputs are not stored. ·How we check our calculators