Tools

Rental yield calculator

Price and rent are only half the story. See the gross yield, then knock off realistic running costs to find what a rental would actually return.

Gross yield
6.0%
typical rangeUK long-run typical ≈ 5–7%
Net yield (after costs)
4.8%
Annual rent
£13,200

Yield = annual rent ÷ purchase price. Net deducts your running-cost estimate; it ignores mortgage interest and tax — a guide, not advice.

Rental yield — your questions

How do I calculate rental yield?

Gross yield is annual rent divided by purchase price. For example, £1,100 a month on a £220,000 home is £13,200 ÷ £220,000 = 6.0% gross.

What is a good rental yield in the UK?

Most UK buy-to-lets sit around 5–7% gross. Higher-yield areas are often cheaper northern cities; London tends to be lower on yield but historically stronger on capital growth.

What is the difference between gross and net yield?

Net yield deducts running costs — voids, letting fees, repairs and insurance — from the rent before dividing by price. It is a more honest measure of what you actually keep.