Rental Yield Calculator

Calculate both gross and net rental yields to accurately evaluate your property investments

Property Details
£
£
Include SDLT, legal fees, surveys, etc.
£
£
Purchase price + stamp duty/costs + refurbishment
Rental Income
£
months
Average time property is empty per year
£
Monthly rent × (12 - void period)
Annual Expenses
%
%
£
Interest only, based on deposit and rate
%
Set to 0 if self-managing
£
£
£
£
%
% of rental income for repairs/maintenance
£
£
Safety certificates, licensing, etc.
£

Compare up to 3 different properties to evaluate which offers the best return.

About Rental Yield
What is a good rental yield?

In the UK, rental yields typically vary by location and property type:

  • 5-6%: Considered average for many UK areas
  • 7-8%: Good yield, often seen in higher-demand areas
  • 9%+: Excellent yield, typically found in HMOs or high-yield investment areas

However, a good yield depends on your investment strategy, location, and risk tolerance. Properties with higher yields may come with increased risks or management requirements.

Gross vs. Net Yield

Gross Yield is calculated as: (Annual Rental Income ÷ Property Value) × 100%

Net Yield is calculated as: ((Annual Rental Income - Annual Expenses) ÷ Property Value) × 100%

Net yield provides a more realistic picture of your returns, as it accounts for all the costs associated with owning and managing a rental property.

Common Expenses for Landlords
  • Mortgage Interest: The cost of borrowing to purchase the property
  • Management Fees: Typically 8-15% of rental income if using a letting agent
  • Insurance: Landlord insurance and/or building insurance
  • Maintenance: Typically 1% of property value annually, or 10% of rental income
  • Service Charges & Ground Rent: For leasehold properties
  • Void Periods: Times when the property is empty between tenants
  • Other Costs: Safety certificates, licensing, accountancy fees, etc.