Gross Rental Yield Calculator
Written by Thierno Sadou Diallo, formula verified per our methodology • Last checked on 9/5/2026
Gross rental yield is calculated as (annual rent ÷ purchase price) × 100. For a rent of €800/month (€9,600/year) and a property bought for €200,000, the gross yield is 4.8%.
Explanation
Gross rental yield is the quickest indicator for comparing several rental investment opportunities against each other: it relates the annual rent collected to the property's purchase price. This calculator first multiplies the monthly rent by 12 to get the annual rent, then divides that annual rent by the purchase price. This result is deliberately a 'gross' calculation: it deducts neither non-recoverable co-ownership charges, nor property tax, nor management or insurance fees, nor vacancy periods, nor the notary and agency fees that are nonetheless real at purchase — all of these reduce the real net yield, often by several percentage points compared to the gross yield. The gross yield nonetheless remains the standard indicator for a quick first screening between several properties, before a finer study of the net yield. For the monthly payment on a loan that would finance this purchase, see our mortgage calculator; to check your borrowing capacity before making an offer on a property, our borrowing capacity calculator.
Example: rent of €800/month, property bought for €200,000
Inputs
Monthly rent: €800. Purchase price: €200,000.
Calculation
Annual rent = 800 × 12 = €9,600. Yield = (9,600 ÷ 200,000) × 100 = 4.8.
Result
This property's gross rental yield is 4.8% per year.
Frequently asked questions
What's the difference between gross and net yield?
Gross yield (calculated here) only accounts for rent and purchase price. Net yield deducts non-recoverable charges, property tax, management fees, insurance, and estimated vacancy — it's almost always lower than the gross yield, sometimes by 1 to 2 percentage points depending on the property and its location. Net-net yield (or after-tax yield) goes further by also factoring in the taxation applicable to the chosen rental tax regime.
Should notary fees be included in the purchase price?
This calculator doesn't include them by default, to stay consistent with the most widely used definition of gross yield. If you want a more conservative indicator, add notary fees (generally 7 to 8% for existing properties, 2 to 3% for new builds) to the purchase price entered: the displayed yield will then be mechanically lower, and closer to the transaction's real economics.
What gross rental yield is considered good?
This depends heavily on the city and the type of property: a gross yield of 3 to 5% is common in large metropolitan areas where purchase prices are high, while some mid-sized cities show gross yields of 7 to 10% or more. A high yield usually comes with different rental risk or appreciation prospects — it should never be read on its own.