Rental Yield Calculator
Rental yield is the annual rent you receive as a percentage of the property price. It is the quickest way to compare how good an investment a property is.
Enter the price, monthly rent and running costs to see both gross and net yield.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: £200,000 property, £1,000/month rent
Important assumptions
- Yield ignores mortgage costs, tax and capital growth.
- Running costs should cover realistic maintenance and voids.
- This is a screening figure — use the buy-to-let calculator for the full picture.
Frequently asked questions
What is a good rental yield?
In the UK, gross yields of 4–6% are typical, with higher yields in the north of England and Wales and lower yields in London and the south-east. Net yield after costs is the figure that matters.
Gross or net yield — which should I use?
Net yield, because it accounts for the costs of owning and letting the property. Gross yield is a quick comparison tool; net yield is the real return.
Does yield include capital growth?
No. Yield is income only. Many landlords care about total return — yield plus capital growth. This calculator shows the income side.
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These calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.