What rent would cover your property costs?
Understand a break-even rent before relying on a listing’s headline yield.
A realistic rent matters more than a target return.
Break-even rent is the starting monthly rent needed for the first year’s rent to cover running costs, modelled taxes and loan payments. The money left over is then zero. This does not predict what a tenant will pay.
The calculation includes time without rent, expenses charged as a share of rent, financing and the chosen tax assumptions. The full calculator lets you change those assumptions. Compare the result with dated local rent statistics and the property’s condition, size and location.
Computed example, not a property listing
Fictional mainland Aveiro scenario: purchase €250,000.00, tax value €150,000.00, gross monthly rent €1,400.00, financing 70%, annual interest 3.5%, term 30 years; holding period 10 years.
Tax resident, investment acquisition on 2026-09-12; no young-buyer relief; vacancy 5%, effective tax rate on net rental income 25%.
Monthly rent needed to cover costs: €1,261.38
Rent, appreciation and interest are editable assumptions, not forecasts. The downside reduces rent by 10%, increases vacancy by 5 percentage points and interest by 2 points, reduces appreciation by 2 points and adds a €1,000 annual repairs allowance. See the complete assumptions in the interactive example.
The free tools are simplified starting points. The full calculator lets you adjust costs, financing, taxes and timing, then compare scenarios for a more detailed analysis. Open the calculator
Educational estimates, not financial, legal, tax or investment advice. Methodology and sources