Rental Yield Calculator UK
Get gross and net rental yield from price, monthly rent and running costs, and see how rent and price change it.
Free · runs in your browser · nothing is uploaded
How to use the rental yield calculator
- Enter the Purchase price in pounds. The example is £220,000.
- Enter Purchase costs (notary, taxes, fees). Net yield divides by the price plus these costs, so include the one-off costs you expect to pay.
- Enter the Monthly rent you expect, and Vacancy as the percentage of rent you lose to empty months.
- Enter the yearly running costs: Non-recoverable charges per year, Property tax per year, Insurance per year and Maintenance per year. Leave any you do not expect at zero.
- Enter Management fee (% of rent) as a percentage. The example is 10.
- Enter Down payment and Interest rate as percentages, then Loan term (years).
- Tick Finance the purchase costs too only if your lender will lend against those costs. Otherwise leave it unticked.
- Read the gross yield, the net yield and the cash flow per month after tax.
- Look at the grid of net yield for rent and price changes to see how sensitive the result is.
The results update live as you type. Under the tool there are buttons for Reset to examples, Copy summary, Download CSV and Print or save as PDF. The page address holds your inputs, so a link you share recreates the same result.
Change one input at a time to see which result moves. The address bar keeps your inputs, so you can bookmark or share a scenario. Reset to examples restores the example values.
How is gross yield different from net yield?
Gross yield uses only the rent and the price. For the example, £13,200 a year divided by £220,000 is 6.00%. Net yield takes off the costs first. Rent of £13,200 less vacancy of £528 and charges and running costs of £2,367 leaves £10,305. Divided by £228,000 (the price of £220,000 plus £8,000 of purchase costs), that is 4.52%.
| Item | Year 1 |
|---|---|
| Rent per year | £13,200 |
| Vacancy loss | -£528 |
| Charges and running costs | -£2,367 |
| Net rental income | £10,305 |
| Total cost (price + purchase costs + works) | £228,000 |
| Loan payments | -£11,575 |
| Cash flow | -£1,270 |
Net yield when rent and price change
The grid below shows net yield for each pair of rent and price. Moving down a column changes the rent, and moving across a row changes the price. The centre cell matches the headline 4.52%. A 10% lower rent cuts it to 4.02%, and a 10% higher price cuts it to 4.11%.
| Monthly rent | Purchase price -10% | Purchase price ±0% | Purchase price +10% |
|---|---|---|---|
| £990 (-10%) | 4.47% | 4.02% | 3.65% |
| £1,045 (-5%) | 4.74% | 4.27% | 3.88% |
| £1,100 (0%) | 5.02% | 4.52% | 4.11% |
| £1,155 (+5%) | 5.30% | 4.77% | 4.34% |
| £1,210 (+10%) | 5.58% | 5.02% | 4.56% |
Which costs belong in net yield?
Include every cost that comes out of the rent: the letting agent fee, insurance, repairs, service charge and ground rent, voids and the safety certificates the property needs. Leaving one out makes the net yield look better than it is. The price side includes purchase costs, so the result reflects the full cash you put in. Enter your own figures for each box, because the example values are not market averages.
What is a good rental yield in the UK?
The answer shifts with location, the kind of property, the risk you accept and the alternatives for your cash. The calculator does not give an average, so compare your net yield with the interest rate you enter and with other options open to you.
How does the mortgage change the result?
Net yield ignores the loan. The cash flow includes it. With the example, loan payments of £11,575 leave a cash flow of -£1,270 a year, or -£106 a month. Divided by the cash put in (25% of £220,000 plus £8,000 of costs, £63,000), that is -2.0% cash-on-cash.
What does the calculator leave out?
Yields are before income tax. For stamp duty and tax on the purchase, use the buy to let calculator. Any costs without an input box are not included.
Frequently asked questions
How do you calculate rental yield in the UK?
Gross yield is annual rent divided by the purchase price, times 100. Net yield is (annual rent minus vacancy minus running costs) divided by (price plus purchase costs), times 100. The example gives 6.00% gross: £13,200 ÷ £220,000.
Is 4% a good rental yield?
It moves with location, property type, risk and the other uses you have for the money. A single figure cannot judge every purchase, so compare the net yield with the interest rate you borrow at and with what your money could earn elsewhere. Work out both with the same costs, so the comparison is like for like.
Is buy to let dead in the UK?
The calculator cannot answer that. Test one purchase with its net yield, its monthly cash flow and the costs you expect. The numbers decide for each property.
Should I sell my house or rent it out?
Compare the net yield on the rent with what the sale money would earn elsewhere, after the costs of selling. Any tax on a sale is not part of this calculator, so include it with a qualified adviser’s help. Use the same time period for both figures, so the comparison is fair.
What is the difference between gross and net rental yield?
Gross yield is the annual rent divided by the purchase price. Net yield takes vacancy, running costs and other charges off the rent, then divides the result by the price plus purchase costs. The example gives 6.00% gross (£13,200 ÷ £220,000) and 4.52% net (£10,305 ÷ £228,000).
What factors change the rental yield?
Rent, price, running costs and purchase costs all move the result. At the example, a 10% lower rent cuts net yield from 4.52% to 4.02%, and a 10% higher price cuts it to 4.11%. The calculator does not take location as an input, so compare areas using your own rent and price figures.
Should I include mortgage costs in the rental yield?
No. Net yield ignores the loan, so loan payments are left out of it. The cash flow includes them: with the example, loan payments of £11,575 leave a cash flow of -£1,270 a year, or -£106 a month.
Related tools
- buy to let calculator: use it for stamp duty, tax and the lender test on the same purchase.
- stamp duty buy to let calculator: use it for the purchase tax.
- cap rate calculator: use it for the same idea measured on net operating income.
- rental property calculator: use it for the projection.
- gross rent multiplier calculator: use it for price as a multiple of rent.
- rental yield calculator: use it for the Australian version with weekly rent.