Net Rental Yield Calculator
Yield after the real cost of running the tenancy — the number that matters.
Annual rent
£13,200
Total annual costs
£3,250
Net annual income
£9,950
Net yield
4.98%
Gross yield (for comparison)
6.60%
Costs as % of rent
24.62%
Above 35% is high for a single let.
What this calculator tells you
Net yield is gross yield with the truth added. Once management, insurance, maintenance, compliance certificates and an honest void allowance come out, most UK single lets lose between a quarter and a third of the headline rent. Modelling that properly before you buy is the single biggest protection against a property that looks profitable on a portal and loses money in real life.
How it works
- 1Start with the annual rent.
- 2Deduct the management fee as a percentage of rent collected.
- 3Deduct fixed annual costs: insurance, maintenance, service charge, ground rent, safety certificates and any licensing fee.
- 4Deduct a void allowance — 5% is roughly two and a half weeks empty per year, which is realistic for most areas.
- 5Divide the remainder by the property value and multiply by 100.
Worked example
A £200,000 house at £1,100 per month with a managing agent
- Annual rent £13,200.
- Management at 10% = £1,320. Void allowance at 5% = £660.
- Insurance £250, maintenance £800, compliance £220.
- Total costs £3,250, leaving £9,950 net.
- £9,950 ÷ £200,000 × 100 = 4.98% net yield.
The property drops from 6.60% gross to 4.98% net — a 1.6 point gap that is entirely typical, and the reason gross yield alone should never decide a purchase.
Frequently asked questions
What costs should a landlord budget for each year?
As a rule of thumb, budget 25–35% of gross rent for a managed single let: management fees, insurance, maintenance, safety certificates, and voids. HMOs and properties with bills included run considerably higher.
How much should I allow for voids?
Between 4% and 8% of annual rent depending on the local market. In a strong letting area with long tenancies you may see almost none for years, then lose six weeks in one go — the allowance smooths that out.
Does net yield account for tax?
No. Net yield is a pre-tax, pre-mortgage measure of the property's operating performance. Income tax and mortgage interest relief depend on your personal circumstances and structure.
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.