Rental Yield Calculator
Calculate the gross and net yield of your buy-to-let investment. Monthly cashflow, payback period and cost breakdown. No sign-up, no data sent to any server.
Investment details
Income & vacancy
Annual running costs
Yield shown before income tax. Rental income is subject to tax in your annual return; deductible expenses can significantly reduce the tax bill.
Enter the purchase price and monthly rent to see the results
How the figures are calculated
- Total investment — Purchase price + acquisition costs (transfer tax/VAT, notary, registry) + renovation.
- Gross yield — (Monthly rent × 12) / purchase price × 100. A quick indicator before costs.
- Net yield — (Vacancy-adjusted income − annual running costs) / total investment × 100. The most relevant figure.
- Monthly cashflow — Net monthly income − monthly costs − mortgage payment (if applicable). Money in your pocket each month.
- Payback period — Total investment / annual net income. Years to recover your capital.
Frequently asked questions
What is gross rental yield?
Gross yield is the ratio of annual rental income to the purchase price, without accounting for costs or financing. It is a quick benchmark to compare properties. A typical gross yield in Spain ranges from 4% to 7%.
How do you calculate net rental yield?
Subtract all annual running costs (IBI, service charge, insurance, maintenance and vacancy) from gross rental income, then divide by the total investment (purchase price + acquisition costs + renovation). Example: (€8,400 income − €2,000 costs) / €120,000 investment = 5.3%.
What is a good rental yield?
A net yield above 4–5% is generally considered acceptable in most Spanish markets. Below 3% net, the investment may not compensate for the risk compared to financial alternatives. In high-demand cities, lower yields are often offset by capital appreciation.
What costs should I include?
Key running costs: IBI (local property tax), service charge (comunidad), home insurance, and a maintenance allowance for repairs. Acquisition costs (transfer tax or VAT, notary, land registry) are added to the initial investment, not to annual costs.
Does a mortgage improve my return?
A mortgage can boost return on equity if the net property yield exceeds the loan cost. However, it reduces monthly cashflow and adds financial risk. Use the mortgage toggle to see the real impact on your cash position.