How much will this rental property earn me each month?

Price, rent, running costs and mortgage: get the monthly cash flow and the gross and net yields of the property, before tax. The calculation is the same in every country — just choose your currency.

Currency

The propertyPurchase priceBuying costs and renovationMonthly rentAnnual running costs (not paid by tenant)Property tax, service charges, insurance, maintenance, management…Vacancy (% of the year)

FinancingLoan amount (0 if cash purchase)Interest rate (% per year)Loan term (years)

Monthly cash flow before tax

-£172/ month

Gross yield 5.7% · Net yield 4.05%

Universal calculation, valid in every country · before tax · pre-filled example, editable

Gross yield: 5.7%
Net yield: 4.05%
Monthly loan payment: £901
Cash invested: £36,000

Calculation assumptions (5)

Gross yield = annual rent ÷ purchase price.
Net yield = (rent collected − annual costs) ÷ (price + buying costs).
Rent collected = annual rent × (1 − vacancy).
Loan payment: fixed-rate repayment mortgage, constant monthly payments, excluding loan insurance.
No tax is deducted: rental taxation depends on your country and personal situation.

Indicative calculation, provided for information only. It is not personalised financial, legal or tax advice.

Gross yield, net yield, cash flow: three different questions

Gross yield compares annual rent with the purchase price. It is useful to sort listings quickly, but it ignores buying costs, running costs and vacancy: it is the most flattering figure, and the least useful to decide.

Net yield deducts the costs the tenant does not pay and accounts for months without a tenant, then compares the result with the real cost of the purchase, buying costs and renovation included.

Cash flow answers the question every investor who borrows asks: once the mortgage is paid, how much is left — or how much do I have to add — each month?

Why the result is before tax

Rental income taxation depends on your country, the tax regime, how you own the property and your personal situation. A calculation that ignores it would be wrong; one that assumes it would be wrong for most readers. This calculator therefore stops before tax, and says so.

What is not stored

The values you enter stay in your browser. They are not sent to any server and are not linked to any account.