Many eVTOL concepts are characterized by non-traditional vehicle layouts with distributed propellers. Two propeller interaction types were distinguished in this paper, which investigates how propeller interaction in side-by-side and one-after-another configuration affects performance, in terms of thrust, power, in-plane forces and out-of-plane moments, and how those performance effects depend on axial and lateral propeller spacing. A wind-tunnel experiment was performed with two propeller units, one instrumented with a force/torque sensor, and the other introducing the aerodynamic interaction. Total pressure and planar PIV measurements were taken to investigate slipstream characteristics. A strong dependency of interaction effects on the geometric layout was found. For side-by-side interaction characteristic of vertical takeoff and transition, interaction effects varied from weak at small angle of attack to strong at larger angles. A drop in rear propeller thrust of up to 30% was found at constant advance ratio. Keeping thrust constant resulted in power penalties up to 13% for the two propellers combined. For one-after-another interaction, characteristic of cruise, a maximum reduction