Rental yield calculator — analyse your investment free of charge
Internal rate of return (IRR) on your equity
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After-tax return on the equity invested.
After-tax cash flow–
Total return on equity–
Total wealth at the end–
Net sale proceeds–
Additional purchase costs–
Tax on sale (§23)–
Tap a measure to see its curve in the chart:
Scenario comparison
| Scenario | IRR | After-tax cash flow | End wealth | Net sale |
|---|
Year by year
| Year | Rent | AfA | Interest | Tax effect | After-tax cash flow | Outstanding loan | Wealth |
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Non-binding illustrative calculation. This calculation does not replace tax, legal or financial advice. Tax rates are simplified (constant marginal rate, no progressive taxation). Actual performance depends on the property, financing, rental income, costs, vacancies, maintenance and your personal circumstances.
Frequently asked questions
What is the internal rate of return (IRR)?
The internal rate of return (IRR) is the annual return on the equity you actually invest over the entire holding period. It includes all cash flows, including after-tax cash flow and net sale proceeds. It is the most informative single measure of an investment.
When does capital gains tax (Spekulationssteuer) apply?
If a rented property is resold within 10 years (§23 EStG), the capital gain is taxed at your personal tax rate; depreciation already claimed is added back to the gain. After 10 years, the sale is tax-free. An exception applies to owner-occupied property.
Straight-line or declining-balance depreciation?
Straight-line depreciation deducts the same amount each year (2.0/2.5/3.0% depending on the year of construction). Declining-balance depreciation (§7(5a), new builds with construction starting from October 2023) deducts 5% of the remaining book value — more initially, less later. It switches to straight-line depreciation when that provides a larger deduction.
What additional purchase costs arise?
Property transfer tax (Grunderwerbsteuer, 3.5–6.5% depending on the federal state), notary (Notar, around 1.5%), land register (Grundbuch, around 0.5%) and, where applicable, an estate agent (buyer’s share often 3.57%) — around 8–12% of the purchase price in total. The calculator shows each item separately.
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