The formulas
- Gross yield = yearly rent ÷ purchase price × 100.
- Net yield = (yearly rent collected − owner's yearly costs) ÷ (purchase price + fees + works) × 100.
- Monthly cash flow = (rent collected − owner's costs) ÷ 12 − mortgage repayment.
Example: a flat bought for €180,000 with €14,000 of fees, let for €750 a month. The gross yield is 9,000 ÷ 180,000 = 5%. With 2 empty weeks a year and €1,850 of yearly costs, the rent collected drops to €8,654 and the net yield to (8,654 − 1,850) ÷ 194,000 = 3.51%.
What the calculation doesn't tell you
Net yield is worked out before tax and before repaying the borrowed capital. To compare projects, also look at cash flow, the state of the property (works to plan, energy rating: since 1 January 2025 a home rated G is no longer considered decent for a new lease or a renewal in France, and the same will apply to F-rated homes in 2028), and rental demand in the area.
Frequently asked questions
What's the difference between gross and net yield?
Gross yield compares the yearly rent with the purchase price. Net yield deducts the costs the owner keeps paying (property tax, non-recoverable building charges, insurance, management, works, empty periods) and adds the purchase costs to the price. It's always lower, but closer to reality.
What's a good rental yield in France?
There's no universal threshold: it depends on the town, the type of property and the risk. As a rule, the higher the yield, the riskier the local rental market (empty periods, arrears, harder resale).
Should I include notary fees?
Yes, for net yield: purchase costs (about 7 to 8% for an existing property in France, 2 to 3% for a new build) are part of the cost of the investment.
Does net yield include tax?
No. The calculator gives a yield net of charges, before tax. How rental income is taxed depends on your French tax regime (micro-foncier, réel, LMNP), your residence and your tax bracket.
Updated 8 October 2026. This tool gives general information about French tenancy law and doesn't replace personal legal advice.