Calculator · Investment

Rental yield calculator for German property

The gross yield appears in every listing — the more honest figure is the net yield: with purchase costs and non-recoverable expenses. Work out both.

How do you correctly calculate rental yield on a property?

Gross rental yield (annual rent divided by purchase price) is the figure shown in listings — and the least informative one, because it ignores both purchase costs and ongoing expenses. The meaningful figure is net rental yield: annual rent minus operating costs (maintenance, management, non-recoverable charges, vacancy allowance), divided by the total investment of purchase price plus purchase costs. With realistic numbers, the gap between the two is often 1.5 to 2.5 percentage points. For financing, banks usually look at a third figure: debt service capacity — whether net rent covers the monthly payment. Yield alone doesn't replace a sound calculation. The calculator below compares gross and net yield side by side. Not legal or tax advice.

The gross rental yield relates the annual net cold rent to the purchase price — a quick first look. The net rental yield is more realistic: it includes the purchase costs in the invested capital and deducts the non-recoverable operating costs (management, maintenance reserve, non-recoverable shares) from the rent. Financing and tax are deliberately excluded here — both are individual.

Rental yield calculator

Gross and net rental yield

Enter purchase price, purchase costs, annual cold rent and annual non-recoverable expenses.

Your yield (indicative)
gross rental yield
net rental yield
invested capital

Non-binding guidance. Without financing and without tax effects (depreciation, deductible expenses, your personal tax rate) — these are individual and belong with tax advice. For financing a buy-to-let I advise in line with §34i, without tax advice.

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Investment & financing

Non-residents

Buy-to-let for non-residents

Financing a let German property even with residence abroad.

Buy-to-let for non-residents →
Expats

Buy-to-let on a Blue Card

Buy-to-let for international skilled professionals.

Buy-to-let on a Blue Card →
Costs

Calculate purchase costs

So the invested capital in the yield is right.

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FAQ

Frequently asked questions about rental yield

What is the difference between gross and net rental yield?
The gross yield is the annual cold rent divided by the purchase price. The net yield includes the purchase costs in the invested capital and deducts the non-recoverable operating costs from the rent — it is the more realistic figure.
Are financing and tax included?
No. The calculator shows the property yield before financing and tax. Interest costs, depreciation, deductible expenses and your personal tax rate change the picture individually — tax questions belong with your tax adviser.
Do you also finance buy-to-let for investors abroad?
Yes — that is one of my focus areas. For non-resident taxpayers and expats there are dedicated routes; the decisive factor is the right bank for each constellation.
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Need the blank forms right now? Get them via a quick form: self-disclosure form (DE/EN) · net-worth statement (DE/EN).

Open the file directly — no form: Germany property financing checklist (PDF, 7 pages) · Non-resident mortgage checklist (PDF, 8 pages) · KfW funding overview 2026 (PDF, 2 pages)

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