Calculator

Rental Yield Calculator (Gross & Net)

Work out the gross and the true net yield on a buy-to-let in seconds — after the costs most headline figures conveniently ignore.

Rental Yield Calculator

Gross and true net yield after running costs

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% of rent
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Net yield here is calculated on the purchase price after management, voids, maintenance, insurance and service charges. It excludes mortgage costs — use the Deal Analyser for a full mortgaged return.

These figures are estimates for guidance only and are not financial, tax, mortgage or investment advice. Always do your own research and speak to a qualified adviser, broker or accountant before acting on any deal.

Gross yield is the headline number — annual rent divided by the purchase price. It is useful for a quick comparison, but it flatters a deal because it ignores running costs. Net yield is what actually matters: it deducts letting and management fees, a void allowance, maintenance, insurance and any service charge before dividing by the price.

As a rough guide, many UK investors look for a net yield around 6% or higher, though the right target depends on your strategy, area and finance. For a full mortgaged return including cashflow and ROI, use the Deal Analyser.

Frequently asked questions

What is a good rental yield in the UK?
There is no single answer, but many buy-to-let investors aim for a net yield of around 6% or more. Lower-yield areas may still suit investors prioritising capital growth, while higher yields are common in parts of the North and Midlands.
What is the difference between gross and net yield?
Gross yield is annual rent divided by the property price. Net yield first subtracts running costs — management, voids, maintenance, insurance and service charges — so it reflects what you actually keep before mortgage costs.
Does this calculator include mortgage costs?
No. Rental yield is measured on the purchase price and excludes financing. To include a mortgage, deposit and see monthly cashflow and ROI, use the Deal Analyser.

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