MAKE YOUR NEXT MOVE WITH CONFIDENCE
Gross vs Net Rental Yield in Ireland
Compare rental income with purchase costs without confusing yield and take-home profit.
Ghar.ie editorial guide · Sources checked 27 September 2026
Begin with gross yield
Multiply monthly rent by 12, divide by the purchase price and multiply by 100. At €1,800 monthly rent and a €350,000 price, gross yield is about 6.17%. This quick comparison assumes a full year of rent and ignores operating expenses, so it is a starting point rather than the final assessment.
Allow for vacancy and operating costs
The Ghar net operating calculation reduces rent by the vacant months entered, subtracts annual operating expenses, then divides by price plus acquisition costs. With one vacant month, €4,000 operating costs and €8,500 purchase-related costs, the same example produces about 4.41%. Include service charges and realistic maintenance allowances rather than assuming a recently renovated home has no costs.
Keep financing and tax distinct
A mortgage payment includes interest and principal, while operating yield is a property-level measure. This calculator excludes both mortgage payments and income tax. A positive yield therefore does not establish positive monthly cash flow after borrowing or your personal tax bill. Revenue’s rental income guidance is a separate starting point for understanding the tax position.
Compare like with like
Use the same expense categories and vacancy approach for each listing. Do not compare one home’s gross figure with another home’s net figure. Run a lower-rent or longer-vacancy scenario and consider upcoming repairs. An advertised rent or asking price is an input to investigate, not evidence of a guaranteed investment return.