Gross Rental Yield Calculator
The headline yield figure: annual rent as a percentage of property value.
Annual rent
£13,200
Gross yield
6.60%
Monthly rent per £100k
£550
What this calculator tells you
Gross yield is the fastest sanity check in property. It ignores costs entirely and simply asks: for every pound tied up in this property, how many pence of rent does it produce each year? Agents and portals quote it constantly, so it is the number you will be comparing against when you view listings.
How it works
- 1Multiply the monthly rent by 12 to get the annual rent.
- 2Divide the annual rent by the property price or value.
- 3Multiply by 100 to express the result as a percentage.
Worked example
A £150,000 flat let at £850 per month
- Annual rent: £850 × 12 = £10,200.
- £10,200 ÷ £150,000 = 0.068.
- × 100 = 6.80% gross yield.
6.8% gross is comfortably above the UK average, but check the service charge before celebrating — flats often lose 1–2 percentage points once it is deducted.
Frequently asked questions
Why is gross yield misleading on flats?
Leasehold flats carry a service charge and ground rent that a house does not. A 7% gross yield on a flat with a £1,800 service charge can easily net less than a 5.5% gross yield on a freehold house.
Is gross yield the same as return on investment?
No. Gross yield measures rent against the whole property value. ROI measures profit against the cash you personally put in, which is very different once a mortgage is involved.
Related content
These calculators give general estimates for UK private landlords and letting agents, not legal, tax or financial advice. Figures depend on your circumstances and on the rules in your part of the UK — check the detail or take advice before acting.