What is net yield?
Net yield is the annual net operating income of a property divided by the total investment, including acquisition costs — the return you actually keep before financing.
Formula
Net yield = NOI ÷ (purchase price + acquisition costs) × 100
Example
NOI €18,000 on a €300,000 property with 10% acquisition costs: 18,000 ÷ 330,000 = 5.5%.
Why it matters
It is the only yield that lets you compare properties across countries with different purchase costs and cost structures.
Frequently asked questions
What is a good net yield?
3–5% is typical for well-located European holiday rentals; above 5% usually carries more work or risk.
Does net yield include the mortgage?
No — it is financing-neutral. Use cash-on-cash return or DSCR for a specific loan.