What is gross yield?
Gross yield is annual rental revenue divided by the purchase price, before any costs.
Formula
Gross yield = annual revenue ÷ purchase price × 100
Example
€30,000 revenue on a €300,000 property = 10% gross yield.
Why it matters
Useful for a first screen, dangerous for a decision: it ignores 35–50% of revenue that goes to costs and the 2–15% acquisition costs.
Frequently asked questions
Why do agents quote gross yield?
Because it is the largest number available. Always convert it to net before comparing properties.
How much lower is net than gross?
Typically 40–60% lower for short-term rentals.