Bruttoafkast

Bruttoafkast, or gross return, is a financial metric that expresses the total return on an investment before deductions such as costs, fees and taxes. It is used across asset classes, including stocks, bonds, funds, and real estate, to show performance before expenses.

Calculation methods can vary by asset class, but the general idea is to include capital gains (or losses) and any income received (for example dividends or interest) and exclude costs. A common formulation is: bruttoafkast p.a. = [(Ending value + Distributions) − Beginning value] / Beginning value × 100. When comparing investments, it is important to note whether the reported return is annualized and which cash flows are included.

In real estate, bruttoafkast often refers to gross rental yield. This is typically calculated as annual gross rent divided by the property's purchase price or current market value, multiplied by 100. For example, a property bought for 2,000,000 DKK with annual gross rent of 120,000 DKK yields a bruttoafkast of 6%.

Differences from nettoafkast: Nettoafkast subtracts ongoing costs such as maintenance, management fees, insurance, vacancies, and taxes from the gross return. Net figures reflect the actual profitability after costs, whereas gross figures provide a pre-cost performance snapshot and are useful for initial comparisons.

Limitations: Bruttoafkast does not account for taxes, fees, liquidity constraints, or the time value of money. High gross returns can be misleading if costs and taxes are substantial. It is most informative when used alongside net returns and risk measures.