Gross and net rental yield calculator
Enter the price, the costs and the rent: the gross yield and the net yield are calculated instantly. The fields are prefilled with the invented example from our guides (a T2, a two-room flat: living room + one bedroom, at €150,000).
Total cost of the purchase €168,000 (price + notary fees + works + other costs). Rent collected €8,625 a year after vacancy; charges and taxe foncière €3,008 a year; repairs €539 a year.
Gross yield
Gross yield divides the annual rent excluding charges by the total cost of the purchase: purchase price, notary fees (frais de notaire), works and other costs (an agency fee paid by the buyer, loan arrangement and guarantee fees). Useful to compare two properties quickly. Careful: listings often divide the rent by the purchase price alone, which gives a more flattering figure.
Yield net of charges
Net yield deducts from the rent the months without a tenant, the charges you pay without being able to recover them from the tenant (the non-recoverable share of the co-ownership charges, the non-occupying landlord’s insurance or PNO, management, accountant…), the everyday repairs and upkeep (a percentage of the rent excluding charges, collected) and the taxe foncière (the annual property tax). It takes into account neither the loan nor tax: for that, you need a year-by-year simulation, as in the guide SCI à l’IS: how to calculate the real return.
Frequently asked questions
How do you calculate the gross rental yield?
Multiply the monthly rent excluding charges by 12, then divide by the total cost of the purchase (price, notary fees, works and other costs). Example: €9,000 of rent a year for €168,000 of total cost give a gross yield of 5.36%. Measured against the purchase price alone, as in many listings, you would get 6.00%.
How do you calculate the net rental yield?
Start from the rent actually collected (rent × months let), take off the non-recoverable charges, the taxe foncière and the everyday repairs (the calculator counts 6.25% of the rent excluding charges, collected, adjust it), then divide by the same total cost. In the example, the yield net of charges is 3.02%.
Should the notary fees be included in the calculation?
Yes: they are part of what you pay to buy. The calculator estimates them at 8% of the price, an order of magnitude for an existing (not new-build) home. Untick “Calculate automatically” to enter your notary’s amount.
Does the net yield take the loan and taxes into account?
No. Loan interest, tax (income tax, impôt sur le revenu, or corporate tax, impôt sur les sociétés), depreciation and the resale change the real return a lot. The full simulator calculates them year by year and gives an IRR (internal rate of return) after tax and after the sale.