Rental Yield Calculator France: Net, After-Tax, LMNP

Rental yield explained: gross yield, net yield and cash flow

Gross yield is annual rent divided by the purchase price: 750 a month on a 150,000 property gives 6%. Net yield deducts service charges, property tax and a 5% allowance on rent, then divides by the total project cost (price, notary fees, works, furniture). Cash flow shows what is left each month once the mortgage payment is made.

The formulas used

• Total project cost = price + works + furniture + notary fees, set at a flat 7.5% of the price (modelled on French purchase costs for existing homes).
• Gross yield = monthly rent × 12 ÷ purchase price (no fees or works).
• Net yield = (annual rent − non-recoverable charges × 12 − property tax − 5% of rent for vacancy and upkeep) ÷ total project cost.
• Monthly payment: standard annuity on the amount borrowed (total cost − down payment), M = C × r ÷ (1 − (1 + r)⁻ⁿ), where r is the monthly rate and n the number of months.
• Monthly cash flow = rent − charges − property tax ÷ 12 − loan payment.

Worked example (default values)

Property at 150,000 with 5,000 of works, 2,000 of furniture, rent of 750, charges of 50 a month, property tax of 600, a 20,000 down payment and a loan at 3.9% over 20 years. Notary fees: 11,250; total cost: 168,250; amount borrowed: 148,250. Gross yield: 6.00%. Net yield: (9,000 − 600 − 600 − 450) ÷ 168,250 = 4.37%. The payment is 890.57, so cash flow is −240.57 a month (−2,887 a year), which you top up yourself. Over 25 years the payment drops to 774.36 and cash flow to −124.36.

Assumptions and limits

• Net yield and cash flow are before tax. The "After tax" block applies the chosen regime (LMNP réel, micro-BIC at 50% or unfurnished micro-foncier at 70%) with your marginal rate and 18.6% or 17.2% social levies. Loan interest is not deducted under the réel regime, and borrower insurance, arrangement fees and guarantees are not included.
• The 5% allowance is included in net yield but not in cash flow.
• Notary fees are a flat rate; the real amount depends on the price and location.
• An estimate that does not replace advice from a notary or adviser.

Sources and dates: 7.5% is a rough figure for French purchase costs on existing homes. France's 2025 Finance Act (law no. 2025-127 of 14 February 2025, art. 116) lets départements raise their transfer tax rate from 4.5% to 5% for deeds signed from 1 April 2025 to 31 March 2028, except for first-time buyers; transfer taxes then reach about 6.32% of the price and total costs approach 8%. The 3.9% default loan rate is indicative, not verified (checked 14/10/2026).

Frequently Asked Questions

How do I calculate the gross yield of a rental property?

Divide annual rent by the purchase price and multiply by 100. Rent of 750 a month, or 9,000 a year, on a 150,000 property gives 6%. This figure ignores purchase costs, charges and financing.

What is the difference between gross and net rental yield?

Net yield deducts non-recoverable charges, property tax and a 5% allowance for vacancy and upkeep from the rent, then divides by the total project cost (price, notary fees, works, furniture). In the default example, 6% gross becomes 4.37% net.

Why is my cash flow negative when gross yield is 6%?

Because the loan payment exceeds rent minus charges and property tax. Borrowing 148,250 at 3.9% over 20 years costs 890.57 a month against 650 of net rent, i.e. −240.57 a month. Over 25 years the payment drops to 774.36 and the shortfall to 124.36.

Does the simulator account for tax on rental income?

Yes, in the "After tax" block: pick LMNP réel, micro-BIC or unfurnished (micro-foncier) and your marginal rate. Net yield and cash flow at the top stay before tax. With the default values and a 30% marginal rate, annual tax is €0 under LMNP réel, €2,187 under micro-BIC and €2,974 for an unfurnished let. Loan interest, borrower insurance and arrangement fees are not deducted, so the real result may differ.

What is net-net yield?

It is the net yield minus the tax on rental income under the chosen regime, divided by the total project cost. With the default values and a 30% marginal rate, 4.37% net becomes 3.07% under micro-BIC (€2,187 of tax) and 2.60% for an unfurnished let (€2,974). Under LMNP réel, tax is zero and net-net stays at 4.37%.

Furnished or unfurnished: which regime gives the best net-net yield?

Under LMNP réel, the tool deducts each year the depreciation of the building (85% of the price over 25 years), works (10 years), furniture and notary fees (5 years): €8,250 in the default example, enough to bring tax down to zero without creating a loss. Micro-BIC taxes 50% of rents and unfurnished lets 70%. Net-net yield thus falls from 4.37% under LMNP réel to 2.60% unfurnished.

Which social levy rate applies in 2026?

18.6% for furnished lets since the taxation of 2025 income, and 17.2% for unfurnished lets. The calculator applies 18.6% to micro-BIC and LMNP réel, and 17.2% to unfurnished lets: at a 30% marginal rate, micro-BIC in the default example costs 4,500 × 48.6% = €2,187.

How is rental vacancy taken into account?

Collected rent is reduced in proportion to the weeks without a tenant: 2 weeks out of 52 bring €9,000 of annual rent down to €8,654. This amount feeds the net yield, cash flow and tax, while gross yield is still based on the full rent.

Is this tool really free?

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Is my data protected?

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