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Rental Entry Threshold Calculator

The rental entry threshold calculator helps you determine the minimum rent you must charge to break even on an investment property — covering the mortgage payment and admin costs after allowing for rental income tax. The calculator also shows the gross annual rental yield and an approximate ROI. Remember that the minimum rent is the break-even point — in practice you should aim higher to account for vacancies, repairs and unexpected costs.

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How we calculate the minimum rent

Costs = mortgage + admin fee. Minimum rent = costs / (1 – tax/100). With buffer: minimum rent × 1.17 (2 months' vacancy per year). Annual revenue = rent × 12. ROI = (annual revenue – annual costs – annual tax) / property value × 100. Rental yield = annual revenue / value × 100.

Example: property 600,000 PLN, mortgage 3,200 PLN, admin 500 PLN

Property value 600,000 PLN, monthly mortgage 3,200 PLN, admin fee 500 PLN, rental tax 8.5% (lump-sum rate). Total costs = 3,700 PLN. Minimum rent = 3,700 / (1 – 0.085) ≈ 4,044 PLN. With vacancy buffer: approx. 4,731 PLN/month. Gross rental yield ≈ 8.09%. ROI at minimum rent ≈ 0%.

Frequently asked questions

How do I calculate the minimum rent to break even?

Minimum gross rent = (mortgage + admin fee) / (1 – tax rate). By dividing by (1 – tax), the post-tax rent exactly covers costs. Every zloty above this amount is your net profit.

What rental income tax rate applies in Poland?

Private rental income in Poland can be taxed as a lump-sum from revenues (8.5% up to PLN 100,000 annual revenue, 12.5% above) or under the general scale (12%/32% of income). The 8.5% lump-sum is most commonly chosen as simple and advantageous.

What is the gross rental yield and should it be at least 5%?

Gross rental yield = (annual rent / property value) × 100%. In Poland typical values are 4–7%. A 5% yield is considered the minimum for viability. Compare the net yield (after costs and taxes) with alternative investments such as government bonds (4–6% gross in 2026).

The vacancy buffer is a rent mark-up for periods when the property is empty. Two months' vacancy per year (about 17%) is a common assumption. The calculator shows the buffered rent as a starting point for negotiating the asking price with prospective tenants.

The calculator only includes the mortgage and admin fee. In practice add: property insurance (approx. 500–1,000 PLN/year), property tax (a few hundred PLN/year), repairs and maintenance (approx. 0.5–1% of value/year), management fee (if through an agent, 5–10% of rent). Include these to find your true break-even.

Short-term rental can generate higher revenue (2–3× higher nightly rates vs. long-term), but involves higher running costs (cleaning, communication), higher off-season vacancy risk and different tax rules. Many cities also have regulations restricting short-term lets.

In Poland evicting a non-paying tenant can take years due to tenant protection laws. This can be shortened by signing an occasional tenancy agreement (requires a notarial act but simplifies eviction). Consider legal insurance or specialist landlord insurance to reduce risk.

It depends on: (1) the ratio of sale price to achievable rent (higher yield favours renting); (2) capital growth prospects; (3) your liquidity needs; (4) management burden. In Poland with yields of 4–6% and positive price trends, long-term holding and renting can be a sound strategy.

Rental property is a real asset (inflation hedge), with low correlation to equities, providing regular cash flow. Downsides: low liquidity, time commitment, regulatory risk. Optimally rental property should form part of a diversified portfolio (equities, bonds, real estate) rather than be the sole investment.

At a net profit of approximately 500–2,000 PLN per property per month (after mortgage, costs and taxes) and family expenses of about 8,000 PLN, you need 4–16 mortgaged properties or 2–6 unencumbered ones. This is a long-term strategy (15–25 years) requiring systematic reinvestment of cash flow and debt repayment.

Results are indicative. Actual rental investment profitability depends on many factors: location, rent negotiation, vacancy risk, renovation costs and tax law changes. Consult a financial advisor before investing.

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