Rental Yield Calculator
Calculate gross and net rental yield on an investment property to assess return on investment.
Results
What is it?
Rental yield measures the annual return on a buy-to-let property as a percentage of its value. Gross yield ignores running costs; net yield deducts them to give a truer picture of profitability.
How to use
Enter the property value, the expected annual rent, and your annual costs (insurance, maintenance, letting agent fees, void periods). The calculator returns both gross and net yield instantly.
Example scenario
A property worth 200,000 GBP rents for 1,000 GBP/month (12,000 GBP/year). Gross yield = 6%. After 2,400 GBP in annual costs, net yield = (12,000 - 2,400) / 200,000 x 100 = 4.8%.
Pro tip
A gross yield of 5-8% is generally considered good in the UK. Always factor in void periods (typically 4-6 weeks per year) by reducing your annual rent estimate. Net yield below 3% may not cover mortgage interest.