LMNP profitability: calculate yield and cash flow

Open Monetra's LMNP profitability calculator and enter the proposed furnished rental. Results update immediately; this guide explains every key metric and the tax simplifications used by the model.

LMNP profitability is not simply annual rent divided by purchase price. A furnished rental includes acquisition fees, furniture and perhaps renovation, followed by vacancy, expenses, maintenance, financing and tax. Monetra combines those assumptions to estimate gross yield, net yield, cash flow, break-even rent and the gap from local market rent.

Total acquisition cost adds purchase price, furniture, renovation, acquisition fees and agency fees. Gross yield divides twelve months of target rent by that total. It is a useful first filter, but it ignores almost every cash outflow.

Effective rent applies vacancy to gross rent. Operating expenses combine property tax, non-recoverable charges, insurance, accounting, maintenance and management fees calculated from effective rent. Net yield subtracts those costs and estimated tax before dividing by total acquisition cost.

Monthly cash flow subtracts operating expenses, annual financing cost and selected-regime tax from effective rent. Principal repayment belongs to the financing payment, so it reduces cash even though it builds property equity.

Break-even rent and market comparison

Monetra iteratively finds the monthly rent that makes annual cash flow zero. It divides this by surface area to show break-even rent per square metre. The difference between market rent and break-even rent sets a product status: “viable” above a €100 margin, “tight” within plus or minus €100, and “weak” when market rent is more than €100 below break-even.

Those thresholds are Monetra conventions, not financial standards. Zero cash flow may still be inadequate for a major repair, regulatory upgrade or unusually long vacancy.

Start with every acquisition amount actually incurred. Loan principal is total cost minus down payment. Borrower insurance can be represented as a constant monthly amount on initial principal or converted to a rate and applied to remaining principal.

For operations, use target rent supported by furnished comparables and a separate market-rent estimate. Include vacancy even in a competitive location. Annual expense fields should contain owner costs and non-recoverable amounts only.

• Separate furniture and renovation because the model depreciates them over different periods.
• Include a maintenance budget even after a recent renovation.
• Add management fees when an agent will run the tenancy.
• Treat marginal tax and social-charge rates as scenario inputs, not a determination of liability.
• Compare conservative, base and optimistic presets, then replace them with property-specific evidence.

Tax reference checked on 27 August 2026. French tax authorities classify furnished-rental receipts as BIC. For 2026 receipts, the updated micro threshold is €83,600 with a 50% allowance for furnished rentals other than unclassified tourist accommodation. Always check the current French tax authority's regime guidance before making a tax decision.

Monetra's micro scenario applies a fixed 50% allowance to effective rent, then multiplies the remaining half by the marginal rate and optional social-charge rate. It does not test the receipts threshold and should not be used for the specific rules of unclassified tourist accommodation.

For the real regime, the model subtracts operating expenses, first-year loan interest and simplified straight-line depreciation of the building excluding land, furniture and renovation. A negative taxable base produces zero estimated tax. It does not handle full bookkeeping, depreciation limits and carry-forwards, losses, CFE business tax, social contributions, VAT, sale taxation or future rule changes. The official French furnished-rental guidance remains authoritative.

Assume a €180,000 apartment, €8,000 furniture, €12,000 renovation, €14,400 acquisition fees and €10,800 agency fees. The down payment is €35,000; the €190,200 loan runs for 20 years at 3.7%, with €23.78 monthly insurance.

Target rent is €980, market rent €950, and vacancy 5%. Annual expenses total €4,620. Using the simplified real regime, a 30% marginal rate, 17.2% social charges and default depreciation periods, Monetra estimates:

• total cost of €225,200 and gross yield near 5.22%;
• €11,172 effective annual rent after vacancy;
• annual financing cost close to €13,758;
• zero estimated tax under the simplified real regime versus about €2,637 under micro;
• net yield around 2.91% and cash flow of approximately -€601 per month;
• break-even rent near €1,612, or €42.42/m².

Break-even exceeds market rent by about €662, so the model classifies the project as weak despite gross yield above 5%. The example shows how financing and expenses can overturn a seemingly attractive headline yield.

Start with the market gap. If break-even requires rent far above local evidence, do not repair the conclusion with optimistic rent. Revisit price, down payment, renovation or financing. Then review cash flow, net yield and cash-on-cash yield, which divides annual cash flow by down payment.

Use sensitivity controls for rent, vacancy and rate. A robust project should retain an acceptable conclusion when rent falls by €100, vacancy rises to 8% or the rate increases by 0.25 percentage point. An immediate reversal identifies a narrow margin.

To audit the debt separately, read the mortgage simulator guide. To place the asset inside a repeated-acquisition strategy, use the real estate portfolio guide.

The calculator compares scenarios; it does not prepare a French tax return or provide individualized advice. Confirm rent, recoverable charges, LMNP or LMP status, regime, depreciation and filing duties through current official sources or a qualified professional.

Also account for what the model does not price: management time, tenant default, exceptional renovation, compliance upgrades, illiquidity, sale taxation and regulatory change. Useful LMNP profitability is a range stress-tested under several assumptions, not one percentage.