Price-to-Rent Ratio Calculator
Determine the price-to-rent ratio (multiplier) of a property as investment. Includes all acquisition costs and examples, updated for 2026.
Purchase Price Factor
24.3
Expensive
Gross Rental Yield
4.11%
Annual Net Cold Rent
€14,400.00
Rating Scale Purchase Price Factor
The purchase price factor indicates how many annual net cold rents the purchase price represents. The lower, the cheaper the property relative to rent.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
What is the purchase price factor?
The purchase price factor (Vervielfaeltiger) is the ratio of the purchase price to the annual net rent. A factor of 20 means you pay 20 times the annual rent. Lower factors indicate better investment value.
What is a good purchase price factor?
Factors below 20 are considered favorable, 20-25 is moderate, and above 25 is expensive. In popular cities, factors of 30-40 are common, while rural areas may offer 10-15.
What ancillary costs should I budget for a property purchase?
In Germany ancillary purchase costs typically run 10–15 % of the purchase price: property transfer tax (3.5–6.5 % depending on state), notary and land register (~1.5–2 %), and optionally agent commission (up to 3.57 %).
Guide
Quick Answer
The price-to-rent ratio calculator computes the ratio of purchase price to annual cold rent and evaluates the viability of a property investment.
What is the Price-to-Rent Ratio Calculator?
The price-to-rent ratio calculator computes the ratio of purchase price to annual cold rent and evaluates the viability of a property investment.
How does the Price-to-Rent Ratio Calculator work?
Enter the purchase price and annual cold rent. Price-to-rent ratio = purchase price / annual net cold rent. A low ratio indicates a favourable investment. The calculator also shows the gross rental yield (100 / ratio).
Key Data and Facts
Ratio below 20: favourable. 20-25: moderate. Above 25-30: expensive. Gross rental yield = annual cold rent / purchase price * 100. In major cities 2026: ratio often 25-40.
Step-by-Step Guide
How to calculate the purchase price factor step by step: 1. Enter the purchase price: The asking price or the actual purchase price of the property. 2. Calculate the annual net cold rent: Monthly net cold rent x 12. For owner-occupation: Estimate the market-standard rent for a comparable apartment. 3. Calculate the purchase price factor: Purchase price / annual net cold rent. Example: 300.000 EUR / 12.000 EUR = 25. 4. Assessment: Factor below 20: favourable investment, high yield. Factor 20-25: moderate valuation. Factor 25-30: rather expensive, an increase in value must deliver the return. Factor above 30: very expensive, only worthwhile if strong appreciation is expected. 5. Gross rental yield: 100 / purchase price factor. At a factor of 25: 4 % gross rental yield. 6. Note the net rental yield: Deductions for maintenance (1 %), vacancy (2-3 %), management and non-apportionable costs reduce the yield by approx. 1,5-2 percentage points.
Calculation Example
Eigentumswohnung, Kaufpreis 280.000 EUR, Nettokaltmiete 850 EUR/month. Jahresmieteinnahmen: 10.200 EUR. Kaufpreisfaktor: 280.000 / 10.200 = 27,5. Bruttomietrendite: 3,6 %.
Sources · E-E-A-T
Official sources
Calculations are based on applicable German laws and official data:
- Bürgerliches Gesetzbuch (BGB)
- Rechtsanwaltsvergütungsgesetz (RVG)
- Bundesministerium der Finanzen (BMF)
Full methodology at Methodology.
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