Madrid Property Investment Simulator
Stop guessing your returns. Plug in your property price, expected rent, and structural costs to see your exact Net Yield and monthly Cash Flow in Madrid.
1. Property & Acquisition
2. Financing
3. Rental Projection
Capital Required
€167,023
Monthly Cashflow
-€280
The Financial Breakdown
1. Capital Allocation (The Asset)
- Property Price
- €350,000
- Refurbishment Budget
- €25,000
- Taxes & Fees (Sunk Costs)
- €37,023
- Total Project Cost
- €412,023
- Bank Mortgage (70% LTV)
- -€245,000
- Total Cash Upfront
- €167,023
2. Year 1 Projection (Yearly)
- Effective Gross RevenueBased on 12 months minus 5% vacancy
- +€17,100
- Operating Expenses
- -€4,679
- Mortgage Payments
- -€15,579
- Income Taxes19% Net
- -€199
- Net Cashflow
- -€3,357
3. Investment Yields
- Gross Yield
- 4.80%
- Net Yield
- 3.01%
- Cash-on-Cash ReturnReturn on your liquid cash invested
- -2.01%
Stop guessing. Start analyzing
The best deals in Madrid aren't 'secret off-market properties.' They are the ones that actually make financial sense on a spreadsheet. We help you define your exact criteria, transparently evaluate the reality of a property (the good and the ugly) and guide you toward the best decision.
Book a Free Strategy CallWant to go deeper?
Read our masterclass on Calculating True Real Estate ROI in Madrid
The "Gross Yield" Trap
Real estate agencies often market properties with high "Gross Yields" (e.g., 6%). However, once you factor in Madrid's purchase taxes, mandatory community fees, and high interest rates, many of these "great deals" result in negative monthly cash flow. Always calculate the Net Yield before making an offer.
How to Use the Madrid Rental Yield Calculator
Calculating your true return on investment in Spain requires looking past the advertised "Gross Yield." Our tool helps you uncover your true Net Yield and monthly cash flow in three simple steps:
- Enter your investment details: Input the property purchase price, expected monthly rental income, and whether it requires a refurbishment.
- Input your financing: Adjust the Loan-to-Value (LTV) slider and interest rate to see how mortgage leverage impacts your cash-on-cash return.
- Review the hidden costs: The calculator automatically deducts Madrid’s ITP tax, notary fees, community fees, IBI, and insurance to reveal your actual Net Cash Flow.
Madrid Real Estate Investment Glossary
- Gross Yield vs. Net Yield: Gross yield is simply the annual rent divided by the property price. Net yield is the true return after deducting acquisition taxes (ITP), operating expenses, and maintenance costs.
- ITP (Impuesto sobre Transmisiones Patrimoniales): The property transfer tax applied to second-hand homes. In Madrid, the standard ITP rate is 6%.
- Gastos de Comunidad: Monthly community fees paid by the owner. Older buildings with central heating or physical doormen (porteros) have significantly higher fees.
- IBI (Impuesto sobre Bienes Inmuebles): The annual local property tax paid to the Madrid City Council, calculated based on the cadastral value of the home.
Frequently asked questions