Property Yield Calculator 2026: calculate your rental yield for free
Calculate your property's gross and net rental yield, cash flow and return on equity — AI-powered, transparent, instant. For property investors and landlords in Italy
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How is a property's yield calculated?
Property yield measures how much return an investment generates relative to the capital employed. Three metrics are particularly relevant for landlords and property investors:
The gross rental yield compares the annual net rent to the purchase price — without taking purchase costs or operating costs into account. It serves as a first rough estimate.
Formula: (annual net rent ÷ purchase price) × 100
The net rental yield takes all purchase costs and operating costs into account. It gives a more realistic picture and should be your primary decision basis.
Formula: ((annual net rent − operating costs) ÷ (purchase price + purchase costs)) × 100
The return on equity shows the return on the capital you have actually invested. With a positive leverage effect it rises as more debt financing is used.
Formula: (annual cash flow ÷ equity) × 100
Gross vs. net rental yield: what's the difference?
The gross rental yield serves as a first rough estimate — it is quick to calculate but ignores both purchase costs and operating costs. For a sound investment decision, the net rental yield is what counts.
Caution: Property listings almost always quote the gross yield — without purchase and operating costs a property looks considerably more attractive. Always use the net rental yield when comparing properties.
What is a good property yield in 2026?
There is no one-size-fits-all answer — yield expectations depend on location, property type and risk profile. As a guide for the Italian property market in 2025/2026: