Rental Yield Calculator
Calculate gross and net rental yield on buy-to-let investment properties.
Last updated: April 2026 · Source: GOV.UK — Income tax when you rent out a property
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Gross rental yield is calculated by dividing the annual rental income by the property purchase price and multiplying by 100. For example, a property bought for £250,000 generating £1,000/month rent gives a gross yield of 4.8%. This simple metric lets you quickly compare properties across different price points and locations.
Net rental yield accounts for costs including mortgage payments, letting agent fees (typically 8-15% of rent), maintenance (budget 10-15% of rent), insurance, ground rent, service charges, void periods (typically 2-4 weeks per year) and landlord income tax. The net figure is always significantly lower than the gross yield.
This calculator produces both gross and net yield figures. Enter the property price, monthly rent and running costs to see your return. It also shows the annual cash flow after all expenses, which is the real measure of whether a rental property covers its costs.
Example: £300,000 property, £1,350/month rent
- Annual rent: £1,350 × 12 = £16,200
- Gross yield: £16,200 ÷ £300,000 × 100 = 5.4%
- Annual costs (mortgage £9,600 + agent £1,620 + maintenance £1,600 + insurance £300 + voids £1,350): £14,470
- Net income: £16,200 − £14,470 = £1,730
- Net yield: £1,730 ÷ £300,000 × 100 = 0.58%
Frequently Asked Questions
- What does the Rental Yield Calculator do?
- Calculate gross and net rental yield on buy-to-let investment properties. All calculations are performed in your browser using official UK rates and thresholds.
- Is this based on current interest rates?
- You can enter any interest rate to model different scenarios. Check the Bank of England base rate and current mortgage deals from lenders for the latest rates.
- Should I get professional advice?
- This calculator provides estimates for guidance only. For a formal mortgage offer, speak to a mortgage broker or lender who can assess your full circumstances and provide personalised advice.