Logo

Rental Yield Calculator

Estimate the return on your property investment with gross and net yield metrics.

Property Details

£
£

Estimated Annual Costs

Advanced Factors

5%

Gross Yield

6.0%

Net Yield

4.6%

Annual Financial Summary

Annual Rental Income £18,000
Total Annual Costs £4,200
Net Rental Income £13,800
Annual Cash Flow £13,800

What is Rental Yield?

Rental yield is a measure of the return on investment (ROI) for a rental property. It is expressed as a percentage of the property's value. Investors use it to compare different properties and locations to determine which offers the best financial return.

  • check_circle Gross Yield: Based on the purchase price and total rent.
  • check_circle Net Yield: Accounts for expenses like management, maintenance, and taxes.

What is a Good Rental Yield in the UK?

Yields vary significantly by region. Generally, more expensive areas like London have lower yields but potentially higher capital appreciation.

London
3% – 5%
North West / NE
6% – 9%

How this calculator works

This rental yield calculator compares annual rent with property value to estimate gross yield, then subtracts running costs and vacancy assumptions to estimate net yield and annual cash flow.

Assumptions used

  • The page assumes you enter realistic rent, costs and vacancy settings for the property being assessed.
  • It gives a property-level operating estimate and does not fully model personal tax, financing structures or capital growth.
  • Maintenance, management and void costs can vary significantly in real life and may change year to year.
  • Yield is only one measure of attractiveness and should be combined with local market, risk and financing analysis.

Frequently asked questions

What is the difference between gross and net yield?

Gross yield looks only at rent versus property value, while net yield also subtracts running costs such as management, maintenance, insurance and void periods.

Why can high yield still be risky?

Because a strong headline yield does not guarantee good tenants, low maintenance costs, future capital growth or stable occupancy.

Does this include tax?

No. Personal tax treatment depends on ownership structure, mortgage interest rules and your wider income position, so tax should be analysed separately.

What should landlords check next?

After using this estimate, review financing costs, area demand, compliance costs and local comparable rents before deciding whether a property stacks up.