Rental income return for a cash purchase
Compare gross rental yield with net operating income as a percentage of your total acquisition cost. Enter your own rent, costs and vacancy assumptions. This is an annual income model, not a forecast of capital growth.
For financing, use the Cash Flow Calculator.
Include transfer, trustee, agency, applicable VAT, administration, furnishing and setup costs in the one-off amount. These vary by transaction; confirm them with the trustee, developer and broker. No purchase costs are automatically assumed. Optional blank cost fields are treated as zero, which can overstate the result if you omit real expenses.
Gross yield = annual rent ÷ price. Net operating income = rent after vacancy minus service charges, maintenance, management, insurance and other operating costs. Net operating yield = that income ÷ (price + one-off purchase and setup costs). Negative income remains visible. The model excludes borrowing, capital appreciation, disposal costs, taxes and time-value-of-money effects.
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Book a ConsultationFrequently Asked Questions
What is a good rental return?
There is no universal target. Compare evidence-backed rents, total costs, building condition, supply, resale liquidity and your risk tolerance. A higher advertised yield is not automatically a better investment.
Does this include mortgage payments?
No. This tool models operating income for a cash purchase. Use the Cash Flow Calculator to separate operating income, debt payments and cash-on-cash return.