This calculator will help you calculate the annual yield from renting out real estate. Find out how profitable it is to invest in the rental market of other countries.
It's especially helpful when comparing properties in different countries or cities, where purchase prices and rental demand vary greatly. Whether you're considering investing in a flat in Berlin or a seaside villa in Portugal, this tool helps you understand how well the rental income compares to your initial investment.
Rental properties can be an excellent source of passive income, especially in tourist-heavy areas or cities with housing shortages.
Monthly rental income covers expenses and provides positive cash flow
You can find reliable tenants or use vacation rental platforms
Local property prices are stable or increasing
You plan to hold the property long-term
Shows your property's raw income potential without factoring in any expenses. Higher gross yield typically means better short-term cash flow.
Provides a more realistic measure of profitability by accounting for recurring costs like repairs, taxes, and management fees.
Generally, a gross yield of 6-8% is considered good, while net yields of 4-6% are typically acceptable for most markets.
If you're unsure whether a rental property is worth the investment, this calculator gives you a quick and clear answer. Instead of relying on guesswork, you can simulate rental income and expense scenarios and compare different properties or countries side by side. It's the perfect tool for anyone planning to build a rental portfolio internationally.
Gross rental yield is calculated by taking your expected annual rental income, dividing it by the property's purchase price, and multiplying by 100. It shows your property's raw income potential without factoring in any expenses. A higher gross yield typically means better short-term cash flow, making this a key metric for high-demand rental areas.
Net rental yield provides a more realistic measure of profitability. It accounts for recurring costs like repairs, property taxes, or local landlord fees. By subtracting these annual expenses from your rental income before calculating the yield, you get a clearer picture of your actual return. This is especially important when investing in countries with high property management or maintenance costs.