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Inquly

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Rental yield calculator

Enter the price, purchase costs, rent and yearly expenses to see the gross and net yield, the cash flow and the payback period instantly. No sign-up, and nothing you type is stored.

The price in the deed, before taxes.

Transfer tax (ITP) or VAT and stamp duty, notary, registry, agency and refurbishment.

The rent you collect each month, without utilities.

Property tax (IBI), community fees, insurance, maintenance and management.

12 if it is never empty; 11 leaves a month of margin.

Leave it at 0 if you bought it outright.

Result

Gross yield
5.67%
Net yield
3.81%
Yearly net income
€7,550.00
Monthly cash flow
€629.17
Payback period
26.2 years

An estimate before income tax. Gross yield is measured on the purchase price and net yield on the total investment (price plus purchase costs).

Inquly works out each home's yield on its own from the rent and expenses you actually record. Free for one property.

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How to read the calculator's result

The calculator returns five figures. Each one answers a different question, and none is enough on its own.

Gross yield: for comparing listings

It is twelve months of rent divided by the purchase price. It leaves out expenses and empty periods, which is why it is the figure listings and reports tend to quote. Use it to compare homes with the same yardstick, not to know what you will earn.

Net yield: the one to decide with

Net yield starts from the rent you actually collect (the months let that you enter), subtracts the yearly expenses and divides the result by the total investment: price plus purchase taxes, notary, registry, agency and refurbishment. It is the same formula as in our guide on how to calculate rental yield, with two adjustments that make it more realistic: purchase costs and vacancy.

The yearly expenses should include:

  • Property tax (IBI) and the waste collection charge.
  • Community fees.
  • Insurance: home cover and, if you take it out, rent-default cover.
  • Maintenance and repairs: a yearly reserve, even if one year you spend nothing.
  • Management, if you hand the administration over.

Net income and cash flow

Yearly net income is what is left of the rent collected after expenses. Monthly cash flow also subtracts the mortgage payment. It can be negative even when the yield is positive: the payment includes repaying the principal, which is not an expense, but it still leaves your account every month.

Payback period

It is the total investment divided by the yearly net income: how many years the rent would take to return what you put in, without counting the home's appreciation or rent increases. If expenses exceed the rent, the calculator says it never pays back.

What the calculator leaves out

  • Income tax. Rental income is taxed in IRPF, with deductible expenses and, for a tenant's main residence, a reduction that depends on the date and terms of the lease. Our guide to rental taxation covers it.
  • The yearly rent update, which for leases signed since 26 May 2023 follows the INE's IRAV index. See our article on CPI and rent updates.
  • Appreciation of the property.

From an estimate to real figures

An estimate helps you decide on a purchase. Once the home is let, what matters is measuring with what you actually collect and spend. In Inquly, every payment and expense you record updates the home's yield, and income and expenses stay recorded per home, ready to export when you prepare your tax return. See the finances page.

Frequently asked questions

How is the gross rental yield calculated?

Divide a full year's rent by the purchase price and multiply by one hundred. A flat bought for €150,000 and let for €750 a month brings in €9,000 a year: a 6% gross yield. It is useful for comparing homes quickly, but it ignores expenses and empty months.

What is the difference between gross and net yield?

Net yield subtracts the yearly expenses (property tax, community fees, insurance, maintenance, management) and the months without a tenant, and it is measured on the total investment: the price plus the taxes and costs of the purchase. That is why it is always lower than the gross figure, and it is the one to decide with.

Which purchase costs should I include?

The purchase taxes (transfer tax, ITP, on a resale home; VAT and stamp duty, AJD, on a new build), the notary, the land registry, the agency fee if there was one, and the refurbishment needed before letting. The ITP rate depends on the Spanish region, so check yours.

Does the calculator account for tax on the rent?

No: the result is before income tax. Rental income is taxed in Spanish personal income tax (IRPF), with deductible expenses (including mortgage interest and depreciation of the property) and, when the home is the tenant's main residence, a reduction whose rate depends on the date and terms of the lease. Ask a tax adviser for the tax figure.

Why can cash flow be negative when the yield is positive?

Because the mortgage payment includes repaying the principal, which is not an expense but savings held in the property. Net yield does not subtract it; cash flow does, and it tells you how much money goes into or out of your account each month.

Is the data I enter stored?

No. The calculation runs in your browser and nothing is sent. If you want to keep the figures and have them update with your real rent and expenses, you can create a free Inquly account.

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