Calculate real estate yield

Letzte Aktualisierung am 02.05.2022

Buying a property can be a lucrative investment. To get a quick first impression, you should calculate the property yield. This works either manually or with a Real estate yield calculator calculator below.

Comparedto other forms of investment, investing in real estate is very safe and promises a long-term return. Nevertheless, many people shy away from buying a property. The fear of making a mistake is too great and their knowledge of the real estate market is often too limited.

Calculate real estate yield

Calculating the real estate yield is not witchcraft. Either manually or with a real estate yield calculator.

Calculating property yields is easy with our guide.

You don't have time to find the optimal real estate investment? Then let us advise you without obligation. We will be happy to present you: 

  • ..the investment properties we develop to the highest quality standard (offmarket)
  • ..the locations we have selected with growth potential and already attractive locations today
  • ...our investment properties from 100,000 euros with clearly above-average rental yields
  • ..our financing concept with a financing comparison at over 300 banks 

Return on real estate: Calculation

However, you can also calculate the yield of your dream flat yourself using a simple formula.

Annual rental income x 100 / purchase price = rental yield

For example, if you purchase a flat at a purchase price of 50,000 euros and want to rent it out for 500 euros per month, the calculation looks like this:

6,000 euros x 100 / 50,000 euros = 12

This results in a rental yield of 12 %.

But beware: These figures are not reliable! A trustworthy calculation needs much more information. This is a very simple and superficial yield calculation. Almost any investment would achieve an attractive rental return here. A closer look is therefore very important.

Real estate yield calculator

In addition to the time-consuming way of calculating the property yield by hand, we have developed a tool for quick yield calculation. With the following tool, you can have the real estate yield calculated for you - simply and quickly: 

Net yield/gross yield on real estate

Calculate real estate yield

Calculate property yields: Important differences between gross and net yield.

As already mentioned, the above calculation does not represent an exact calculation. It is the gross rental yield. In your calculation, please always take into account the costs you incur in acquiring, managing and renting out your flat. When calculating the net rental yield the figures look quite different look:

Incidental purchase costs must also be added to the purchase price, including notary and financing costs. Not to mention the tax to be paid. All of this increases your total costs.

The In turn, the rental income is reduced by the ancillary rental costs. These include, above all, the administration costs and the maintenance reserves.

Only when you have deducted these costs from the gross rent do you get

 your actual income. Based on these figures, the rental yield is suddenly much lower, but also more realistic.

Info

What is a good return on real estate?

Again and again, good returns of between 5-6% are advertised. These yields are indeed very attractive, but in many cases they are not based on realistic figures. Therefore, the question arises: What is the average return on real estate?

In den letzten Jahren hat sich in Deutschland herauskristallisiert: Eine gute und realistische Rendite liegt bei 3-4 %. Dies unter Berücksichtigung sämtlicher Kosten. Wer von Anfang an die wichtigen Kennzahlen im Kopf hat und seine Kaufentscheidung wohlüberlegt und mit Hilfe von Profis in Angriff nimmt, kann eine solche Rendite erreichen. Wir sind sehr stolz darauf, dass die von uns begleiteten Immobilienprojekte im Schnitt eine Bruttomietrendite von ca. 3,6% erzielen und teilweise sogar Wohnungen mit über 4% Mietrendite anbieten können.

Average return on real estate

The average rental yield in Germany is less than 3%.
This is due, on the one hand, to the fact that many real estate buyers do not have the necessary knowledge or do not make use of professional support. Thedecisive location factor isalso often not taken into account.


For many buyers it is astonishing that the return on investment is higher for properties in economically weak regions. Yet logically this makes sense. The decisive factor is the relationship between the purchase price and rental income. Although higher rents can be charged in conurbations, the purchase price in these areas is also higher than average.
Instead, higher yields result when the purchase price is significantly lower.

Since it is often not possible for the average person to obtain affordable properties in economically strong locations, it is worthwhile in several ways to have a partner at your side who has the appropriate offers.
In this way, you benefit from both a lower purchase price and higher rental income. 

Checklist for property with a "good" rental yield

So what is important if you want to take the first step towards becoming a successful real estate investor and building your wealth?

  • Find out about the possibilities: In a non-binding initial consultation, we will show you what is in it for you.
  • Property search: According to your preferences (rental yield, value development, "cardinal direction", personal wishes) we will find your perfect yield property.
  • Calculate yield flat: The result of the property search is finding the "perfect" yield property. Of course, the yield must be right first and foremost.
  • Financing: We work with over 300 banks to put together the perfect financing package for you.
  • Processing: We do not leave you alone. We accompany you to your viewing and notary appointments until everything has been officially processed.
  • Hand over the management to us: You don't have to bother with dripping taps or drawing up new tenancy agreements. We take care of renovation work, tenant management, etc.
  • Relax and look ahead to new projects: The first rental income lands in your account and you realise how pleasant it is to generate passive income from your property. Keep it up and plan the next project that will bring you more profits.

The team at Meine-Renditeimmobilie.de will answer all your questions and stand by your side until the deal is successfully closed. Even if you have questions on the subject of "calculating property yields", we will be happy to help you. After all, we have already calculated the property yield for hundreds of properties.
Request your free initial consultation now and enjoy your first return soon! 

Frequently asked questions about the real estate yield calculation

  • Gross rental yield: Annual net cold rent / (purchase price + ancillary costs)
  • Net rental yield: (net cold rent- administration costs p.a.-maintenance costs p.a.) / (purchase price+incidental costs)

Depending on the location, we recommend our clients a rental yield of between 3.5% (in good locations that are secure and have long-term lettability) and >5% (in "weaker" locations with greater risk factors). 

For a rented property, a 5% return means that the annual cold rent is 5% of the purchase price + ancillary purchase costs. The higher the yield, the better the ratio of rental income to purchase price.  

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