UK Rental Yield Calculator
Work out the gross and net rental yield on any UK buy-to-let in seconds. Enter the price, the rent and your running costs to see the true income return. Free, instant, no signup.
Management, insurance, maintenance, void periods, ground rent. Leave blank for gross yield only.
How to calculate rental yield
Gross yield is the simple headline figure:
Net yield is the figure that actually matters. It deducts the cost of running the property (letting fees, insurance, maintenance, void periods, ground rent) before dividing by the price. The gap between the two is often a full percentage point or more, which is why a deal that looks strong on gross yield can disappoint in practice.
Neither figure includes mortgage interest, capital growth or tax. For a leveraged purchase, look at cash-on-cash return alongside yield.
Rental yield FAQs
What is rental yield?
Rental yield is the annual rental income from a property expressed as a percentage of its value. It's the standard way to compare the income return of buy-to-let properties regardless of price.
How do you calculate rental yield?
Gross rental yield = (annual rent ÷ property price) × 100. For example, a £250,000 property let at £1,200 per month earns £14,400 a year, a gross yield of 5.76%. Net yield deducts annual running costs before dividing.
What is the difference between gross and net yield?
Gross yield ignores costs and overstates your real return. Net yield subtracts annual running costs such as letting agent fees, insurance, maintenance, void periods and ground rent, giving a truer picture of what the property actually earns.
What is a good rental yield in the UK?
It varies by region, but UK buy-to-let investors typically look for a gross yield of 5% to 8%. Northern cities often yield higher; London and the South East lower. A higher yield can signal stronger income but sometimes weaker capital-growth prospects.
Does rental yield include mortgage costs?
No. Rental yield measures the property's income return against its value. Mortgage interest, capital growth and tax are separate, so investors usually look at cash-on-cash return or ROI alongside yield to assess a leveraged purchase.
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