Rental Profitability Calculator: Gross, Net Yields and Real Cash-Flow

Simple formula: (Monthly rent × 12) / Purchase price × 100. Example: Apartment at 150,000€ rented at 800€/month → (800 × 12) / 150,000 × 100 = 6.4% gross. Warning: this calculation accounts for NO charges (property tax, condo, works, vacancy). It's a marketing indicator, not real profitability.

Net yield deducts charges (property tax, condo, management, vacancy) but NOT loan payments. Net-net yield (or cash-flow) deducts EVERYTHING, including mortgage. It's the true return on your personal investment. Example: 5% net can become 2% net-net after loan, or even negative if loan is too high.

Not necessarily. Slightly negative cash-flow (-50 to -150€/month) can be acceptable if: 1) You target long-term capital gain (developing area), 2) You benefit from tax advantages (Pinel, property tax deficit), 3) The property gains value quickly. BUT negative cash-flow above -200€/month is risky: you lose money every month.

Add works cost to total investment: Investment = Purchase price + Notary fees + Works. Example: Apartment 120,000€ + notary 8,400€ (7%) + works 20,000€ = 148,400€ total investment. Then calculate yield on this basis. Works mechanically reduce gross yield but increase potential rent.

Depends on zone: Tight zone (Paris, Lyon, Bordeaux): 2-5% | Balanced zone: 5-8% | Loose zone (small towns, rural): 8-15%. A 5% rate means property will be vacant 18 days/year on average. Underestimating vacancy is beginner investors' #1 mistake. Better to forecast 8-10% for safety.

No, but highly recommended if you don't live near property or lack time. Cost: 7-10% of collected rent (excluding charges). Benefits: tenant search, condition reports, unpaid rent management, emergency works. If self-managing, still budget 3-5% for unexpected (repairs, turnover).

Formula: Personal down payment / Annual cash-flow. Example: You invest 40,000€ down payment, annual cash-flow is 2,400€ → 40,000 / 2,400 = 16.7 years. That's time needed to recover your initial investment via rent. Good investment: under 15 years. Excellent: under 10 years.

Depends on strategy: Yield (cash-flow): Small towns, suburbs, student studios. Objective: monthly passive income. Capital gain: Major cities, developing neighborhoods. Objective: 10-15 year gain. Ideal: combine both (net yield 4-5% + growing area). Avoid properties with low yield AND low capital gain potential (guaranteed loss).

Works reduce gross yield (higher investment) but increase rent (more attractive property). Example: Apartment 100,000€ rented at 600€/month (7.2% gross). After 20,000€ works, rented at 750€/month → (750×12) / 120,000 = 7.5% gross. Works are profitable if rent increase covers extra cost in under 5 years.

5 levers: 1) Increase rent (annual ILR adjustment), 2) Reduce vacancy (better tenant selection, responsiveness), 3) Optimize charges (renegotiate insurance, condo), 4) Tax optimization (LMNP, property tax deficit), 5) Refinance loan (lower rate). Potential gain: +1 to 2% net yield.

According to FNAIM/SeLoger 2026 data: Average gross yield: 5.5-6.5% | Average net yield: 3-4% | Average cash-flow: 0 to +150€/month. Best cities: Limoges, Le Mans, Perpignan (8-10% gross). Least profitable: Paris intra-muros, Côte d'Azur (3-4% gross). Province beats Paris on yield, but Paris wins on capital gain.

Yes, thanks to property tax deficit. If your charges (works, loan interest) exceed your rent, the deficit is deductible from your global income (capped at 10,700€/year). Example: You earn 60,000€/year, property tax deficit 10,000€ → you're taxed on 50,000€. Tax savings: ~4,500€. Strategy reserved for high incomes (41-45% marginal tax rate).