How this calculator works
Gross yield is the annual rent divided by the property price, shown as a percentage. Net yield does the same after taking the annual running costs off the rent, which gives a truer picture of what the property returns before finance and tax. Enter the price, the monthly rent, and your best estimate of yearly costs, and the calculator reports both alongside the annual rent and the net income.
Gross and net, worked through
A €300,000 property let at €1,800 a month earns €21,600 a year, a gross yield of 7.2%. Take off €3,600 in annual costs (management, insurance, Local Property Tax, and maintenance) and the net income is €18,000, a net yield of 6.0%. The gap between the two is the running cost, and it is why net is the figure worth comparing across properties rather than the headline gross.
What counts as a good yield
- Location — prime areas trade lower yields for steadier demand and capital growth.
- Running costs — the lighter the costs, the closer net sits to gross.
- Void periods — every empty month drops the realised yield, so budget for some vacancy.
- Tax — rental profit is taxed at your marginal rate, so the after-tax return is lower again.
A note on accuracy
This is a pre-tax, pre-finance yield: it does not deduct income tax or mortgage interest, and it treats your cost estimate as fixed. For the tax treatment of rental income and a landlord’s obligations, see Citizens Information and the Residential Tenancies Board, and our methodology for the formulas.