How the numbers work
Every formula used in this calculator, explained in plain language.
Gross rental yield
Annual rent ÷ purchase price × 100
A quick comparison figure. It ignores vacancy and running costs, so it always looks better than reality.
Effective gross income
Annual rent − vacancy loss + other income
What you realistically collect in a year once some months sit empty.
Net operating income (NOI)
Effective gross income − operating expenses
Income after running costs but before any loan repayment. This is the number valuers care about.
Net rental yield
NOI ÷ total acquisition cost × 100
The honest yield. Total acquisition cost includes legal fees, stamp duty and other purchase costs.
Cash flow
NOI − annual loan repayments
What actually lands in your pocket. Negative cash flow means you top up the property each month.
Cash-on-cash return
Annual cash flow ÷ cash invested × 100
How hard your deposit and purchase costs are working for you.
Price per square metre
Purchase price ÷ built-up area in m²
The fairest way to compare properties of different sizes in the same area.
Investment score & verdict
Weighted average of yield, cash flow, price vs value, location, condition, demand and risk
A guide, not a decision. Change the thresholds in Settings to match your own strategy.