Calculator Rental Yield and Cap Rate | Federico Calò
Calculate gross and net rental yield, net operating income (NOI), capitalization rate (Cap Rate), and return on investment (ROI) for real estate investments. Enter price, rent, and annual costs.
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Frequently Asked Questions
What is the difference between gross and net yield?
Gross yield is the ratio of annual rents to the purchase price, excluding expenses. Net yield (or NOI yield) subtracts annual operating costs (IMU, insurance, maintenance) and represents the actual gain on investment.
What is the Cap Rate for real estate?
The Cap Rate (Capitalization Rate) is the ratio of net operating income (NOI) to the current market value of the property. It is used by professional investors to compare the profitability of different properties, regardless of their financial structure.
What costs should I include in the calculation?
The main annual operating costs to include are: IMU (if due), building insurance, routine maintenance (typically 1–2% of value), owner's condominium fees, management costs if delegated to an agency, estimated vacancy periods.
What is considered a good net return?
In Italy, in major cities a net yield between 2% and 4% is considered average. Yields above 5% net are possible in medium-sized towns or peripheral areas but generally involve higher vacancy risk. This calculator provides indicative estimates - for investment decisions consult a licensed real estate expert.
How is it used?
- Enter property price
Enter the purchase value or market price of the property. This value is the basis for calculating gross yield.
- Set monthly fee
Enter the agreed or estimated monthly rent. The calculator multiplies it by ×12 to get the annual gross income.
- Add annual costs
Enter annual costs incurred (IMU, insurance, maintenance, condominium fees, management). Net operating income (NOI) = gross income − costs.
- Interpret the results
The net percentage yield shows how much the property earns relative to its price. Compare with market rates (typically 2-5% in major Italian cities).
- Cap Rate and ROI (optional)
Optional: Enter the current market value (for Cap Rate) and total acquisition cost including taxes and notary fees (for ROI on investment).