Rental Investment Simulator

Calculate in seconds the gross yield, net yield, monthly cash flow and rate of return on your rental real estate project.

Real Estate Investment Simulator

Acquisition

Purchase price (€)

Property type

Notary fees (%)(auto)

≈ 15 000 €

Renovation works (€)

Total project cost : 215 000 €

Financing

Down payment (€)

Loan duration (years)

Interest rate (%)

Loan insurance (%/year)

Loan amount : 195 000 €

Income & charges

Monthly rent (€)

Vacancy (months/year)

Property tax (€/year)

Taxation

Tax regime

Enable a regime to compute tax and net-net yield.

Resale (optional)

Monthly payment

1 189 €

incl. insurance : 59 €

Total loan cost

90 461 €

Gross yield

4,47%

Net yield

3,53%

Monthly cashflow

yearly : -6 673 €

-556 €

⚠️ Monthly savings effort: 556 €

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Rental Investment: What is it?

Rental investment involves buying a property to rent it out and generate passive income. It's one of the most popular ways to build wealth, thanks to the leverage effect of credit.

Leverage effect

Buy with the bank's money, not yours.

Passive income

The tenant repays your mortgage.

Inflation protection

Real estate follows long-term inflation.

Key profitability metrics

Gross yield

The ratio of annual rent to purchase price. Simple but incomplete as it doesn't account for expenses.

(Monthly rent × 12) / Purchase price × 100

Net yield

Takes into account expenses, property tax, insurance, management. This is the most relevant indicator.

(Rents - Expenses - Taxes) / Purchase price × 100

Cashflow

What remains in your pocket each month after paying all expenses and the mortgage.

Rent - Mortgage payment - Expenses - Taxes / 12

Unfurnished vs Furnished Rental

Unfurnished Rental

3-year lease: stable tenants

Less day-to-day management

Less advantageous tax treatment

Furnished Rental (LMNP)Recommended

Property depreciation: almost 0 taxes

Rents 15-20% higher

Flexible lease (1 year, 9 months for students)

More turnover, more management

Tax Schemes

France offers several schemes to optimize the taxation of your rental investment.

LMNP (real regime)

Depreciation of property and furniture, deductible expenses. Often €0 in taxes for 10+ years.

Most advantageous

Pinel Law

Tax reduction of 12 to 21% on the property price (new, rent caps).

Tax reduction

Property Deficit

Renovation costs deductible from rental income, up to €10,700/year from global income.

Tax deduction

6 tips for successful investment

Aim for positive or neutral cashflow from the start, not a savings effort.

Location is king: transport, shops, jobs, schools.

Calculate ALL fees: notary, renovations, condo fees, vacancy.

Prefer the LMNP real regime to optimize taxation.

Don't put all your eggs in one basket: diversify.

Build a cash reserve (6 months of expenses).

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How to calculate the return on a rental investment?

Rental yield measures the ratio between the income generated by a property and its acquisition cost. There are two main indicators: gross yield and net yield, which allow you to assess the attractiveness of a rental investment.

Gross yield

Simple ratio between annual rents and the purchase price of the property, without deducting charges.

(Monthly rent × 12) ÷ Purchase price × 100

A good gross yield is between 5% and 8% depending on the city.

Net yield

Takes into account all charges: property tax, building charges, insurance, management fees.

(Annual rents − Charges) ÷ Purchase price × 100

Net yield is generally 2 to 3 points lower than gross yield.

Cash flow: the key indicator of rental investment

Monthly cash flow represents what you have left each month after paying your mortgage payment and all charges. A positive cash flow means your investment is self-financing.

Monthly cash flow formula:

Cash flow = Rent received − Mortgage payment − Monthly charges − Taxes

✅ Positive cash flow: rent covers everything, you generate additional income
⚠️ Neutral cash flow: the property self-finances, zero savings effort
❌ Negative cash flow: you contribute each month (savings effort required)

How to use this rental investment simulator

1Purchase price : Enter the all-inclusive price (agency fees included) of the property.
2Additional costs : Add notary fees (7-8% for old properties, 2-3% for new) and any renovation work.
3Monthly rent : Estimate the market rent by consulting comparable listings in the same area.
4Charges : Enter property tax, building charges, landlord insurance and management fees.
5Mortgage : Set your down payment, rate and duration to simulate your monthly payments.

Frequently asked questions about rental investment

What yield to target for a profitable rental investment?▼

A gross yield of at least 5 to 6% is generally considered the viability threshold. Below this, net yield risks being negative once charges are deducted. In major cities (Paris, Lyon, Bordeaux), yields of 3 to 4% gross are common but can be offset by strong capital appreciation on resale.

What charges should be included in the net yield calculation?▼

The main charges to deduct are: property tax (varies by municipality), non-recoverable building charges, non-occupant landlord insurance (PNO), rental management fees (6 to 10% of rent), rental vacancy (count 1 month/year on average) and provisions for works.

How to optimize the tax treatment of my rental investment?▼

The LMNP (Non-Professional Furnished Rental) status with the actual regime allows you to depreciate the property and deduct all charges. The micro-BIC regime offers a flat 50% allowance. For unfurnished rentals, the property deficit deductible from overall income is capped at €10,700/year. Consult a tax advisor to choose the optimal regime.

Is it better to invest in new or old real estate?▼

Old real estate generally offers better gross rental yields (5 to 8%) but often requires renovation work. New properties benefit from reduced notary fees (2-3%) and tax advantages but their price per m² is higher. Our simulator lets you easily compare both scenarios.