A tool for landlords

Rental yield calculator

The percentage the portals advertise is the gross yield: it deducts neither what the purchase cost you, nor the IBI (the local property tax), nor the months the flat sits empty, nor the mortgage, nor the tax office. Here you get your real one. No sign-up.

Purchase price, before costs.

Not counting costs you pass on separately.

%

ITP transfer tax (or VAT on a new build) plus notary, land registry and gestoría fees. The ITP rate is set by your región, so adjust it to yours.

IBI property tax, service charges, insurance, maintenance, special levies, utilities you pay yourself.

One empty month between tenants eats almost a full point of yield. It is the cost nobody writes down.

Did you buy it with a mortgage?

Leave the amount blank and the calculation assumes you paid cash. With a mortgage two things change: the instalment eats the monthly cash, but you put in less of your own money, so your yield on what you put in goes up.

%
years

Use the rate on your deed: your own mortgage rate is what counts, not what the banks advertise today. If it is variable, use the one you are paying right now.

And after the tax office?

Residential letting gets a reduction on IRPF income tax, but since Ley 12/2023 it is no longer always 60 %. Pick your case.

General reduction of 50 % on the positive net income. This is the case for most new contracts.

The band your last euro of income is taxed in. It varies by región; if you do not know it, 30 % is a reasonable reference.