Calculate the yield of a let property: gross and net rental yield, price-to-rent ratio, cash flow before and after financing, return on equity and total return with value development.
Available
Inputs
Enter values
Live
Purchase and rent
EUR
EUR
Total amount, for example from the purchase-costs calculator.
For illustration only – your own calculation is what counts.
Explanation
How Property yield calculator works
The property yield calculator determines the most important key figures of an investment property: gross and net rental yield, price-to-rent ratio, cash flow before and after financing as well as the return on equity. The value development feeds into the total return as a separate scenario.
Yield key figures
Gross rental yieldAnnual base rent / Purchase price
A quick, rough key figure.
Net rental yield(Annual base rent − management) / (Purchase price + purchase costs)
Takes purchase costs and management into account.
Cash flow and equity
Cash flow after financingBase rent − management − debt service
Debt service as an annuity from interest and repayment.
Return on equityCash flow after financing / Equity
Shows the leverage effect of financing.
Practice
Practical examples
For illustration only – your own calculation is what counts.
Result: Gross rental yield of 4.80 %, net rental yield of around 3.64 % relative to a total investment of EUR 330,000, price-to-rent ratio of around 20.8.
Result: Cash flow before financing EUR 12,000, debt service of around EUR 14,400, cash flow after financing of around EUR -2,400 per year; the return on equity is negative accordingly.
Notes
Common mistakes
Only the gross yield considered
The decision is made solely on the gross rental yield.
Include the net rental yield and the cash flow after financing.
Purchase costs forgotten
The yield is related only to the purchase price.
Factor the purchase costs into the total investment; they lower the net yield.
Management and rent default ignored
Only the nominal rent is applied.
Take administration, maintenance and the rent-default risk into account as management costs.
FAQ
Frequently asked questions
What is the gross rental yield?
The annual base rent divided by the purchase price. It is a quick key figure but ignores purchase costs and management.
What is the net rental yield?
The annual base rent minus the non-allocable management costs, divided by the total investment of purchase price and purchase costs. It is more meaningful than the gross yield.
What does the price-to-rent ratio tell me?
It is the purchase price divided by the annual base rent and shows how many annual rents the purchase price corresponds to. A low ratio indicates a higher yield.
What is the cash flow before financing?
The base rent minus the management costs, without debt service. It shows the surplus of the property alone.
What is the cash flow after financing?
The cash flow before financing minus the annual debt service of interest and repayment. A negative value means that you pay extra each month.
How is the return on equity calculated?
The cash flow after financing divided by the equity deployed. Through the leverage of financing it can be considerably above or below the net rental yield.
How is the debt service determined?
As the initial annuity from the borrowing rate and the initial repayment on the loan amount - the same convention as the existing property-financing calculators.
Why is the value development a separate scenario?
Because future appreciation is uncertain. The total return with value development is shown separately and is based on your assumption.
What does the total return show?
It combines the ongoing net cash flows and the assumed value development over the period as an annual return (CAGR) and relates it to the capital deployed.
Are taxes and depreciation included?
No. Taxes, personal depreciation and individual financing side effects are deliberately not simulated in a blanket way, because they depend heavily on the individual case.
Which costs belong to management?
Non-allocable costs such as administration, a maintenance reserve and a rent-default risk. Allocable operating costs are left out, as the tenant bears them.
Is this investment advice?
No. The calculator provides key figures for orientation and does not replace tax or investment advice.
Limits
Limitations
Taxes, personal depreciation and individual financing side effects are not simulated.
The value development is an assumption; the total return is shown as a separate scenario.
No tax or investment advice; the key figures serve for orientation.
Sources
Sources and references
§ 556 BGB – Vereinbarungen über BetriebskostenBundesministerium der Justiz / Bundesamt für Justiz
Official basis for allocating operating and service charges in residential tenancies.
View sourceRetrieved: 08/03/2026 · Verified on: 08/03/2026 · Primary source
Immobilien als Kapitalanlage – VerbraucherinformationBundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
Official consumer information on the opportunities and risks of property as an investment.
View sourceRetrieved: 08/03/2026 · Verified on: 08/03/2026 · Primary source
Betriebskostenverordnung (BetrKV)Bundesministerium der Justiz / Bundesamt für Justiz
Official list of the allocable types of operating costs as the basis of the service-charge items.
View sourceRetrieved: 08/03/2026 · Verified on: 08/03/2026 · Primary source
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