Property · Calculator companion · By K Imports
Rental yield & cash flow: practical guide
This guide explains how to use the Count.ie rental yield & cash flow. Compare gross yield, operating yield and cash after financing. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Rental yield & cash flow calculatorWhat to prepare
- Collect the purchase, loan, rental or project figures from dated documents.
- Distinguish purchase price, borrowing, one-off acquisition costs and recurring ownership costs.
- Check the property's use, tax year and any scheme eligibility against official guidance.
Understand the inputs
The calculation method
Operating yield divides rent after vacancy and operating expenses by total acquisition cost. Financing payments are then deducted for cash flow.
Worked example
Illustrative inputs and their result.
Example inputs
- Purchase price (€)
- 300000
- Stamp duty (€)
- 3000
- Other acquisition costs (€)
- 5000
- Monthly rent (€)
- 1800
- Vacancy allowance (%)
- 5
- Annual insurance (€)
- 500
- Management fee (% of collected rent)
- 8
- Annual RTB cost (€)
- 40
- Annual LPT (€)
- 300
- Annual maintenance (€)
- 1500
- Other annual costs (€)
- 0
- Annual mortgage payments (€)
- 12000
Calculated example result
- Net Yield Percent
- 5.37%
- Annual Cash Flow Before Tax
- €4,538.40
How to interpret the result
A loan payment, gross yield or purchase budget describes only part of ownership. Read exclusions carefully: affordability, lender approval, vacancy, repairs and transaction eligibility may not be fully modelled.
Compare like-for-like properties or financing scenarios, with the same term and cost basis. Where relevant, test a higher interest rate, a vacancy period or a larger maintenance allowance.
Common mistakes to avoid
- Do not compare gross rental yield with net cash flow as if they were the same measure.
- Do not assume a favourable tax result means the property or letting qualifies for a scheme.
- Keep refundable deposits and recurring costs separate from permanent acquisition costs.
Assumptions and sources
Yield is before income tax and capital gains. LPT and RTB costs are editable inputs, not automatic legislative rates. Debt principal is a cash payment, not a tax expense.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.