Rental Yield Calculator (UK)
Work out gross and net rental yield for any UK property in seconds.
Annual rent
£13,200
Gross yield
6.60%
Net yield
5.00%
Net annual income
£10,000
Before mortgage interest and tax.
What this calculator tells you
Rental yield expresses the rent a property produces as a percentage of what the property is worth. It is the quickest way to compare two very different properties in two very different parts of the UK on the same footing. Gross yield uses rent alone; net yield subtracts the cost of actually running the tenancy, which is the number that matters when you are deciding whether a purchase stacks up.
How it works
- 1Gross yield = (monthly rent × 12) ÷ property value × 100.
- 2Net yield = (annual rent − annual running costs) ÷ property value × 100.
- 3Running costs should include letting or management fees, landlord insurance, repairs and maintenance, service charge and ground rent, gas and electrical safety checks, and a realistic void allowance.
- 4Mortgage interest is deliberately excluded from yield — it belongs in an ROI or cashflow calculation, because it depends on how you financed the purchase rather than on the property itself.
Worked example
A £200,000 terrace let at £1,100 per month
- Annual rent: £1,100 × 12 = £13,200.
- Gross yield: £13,200 ÷ £200,000 × 100 = 6.60%.
- Annual running costs of £3,200 leave £10,000 net.
- Net yield: £10,000 ÷ £200,000 × 100 = 5.00%.
A 6.6% gross / 5.0% net yield is a solid result for a single-let house outside London, though the net figure will fall once mortgage interest is taken into account.
Frequently asked questions
What is a good rental yield in the UK?
Most single-let UK properties produce a gross yield between 4% and 8%. Anything above roughly 6% gross is considered strong for a standard buy-to-let, while London and the South East often sit nearer 3–5% with the return weighted towards capital growth instead.
Should I use the purchase price or the current value?
Use the purchase price plus buying costs when you are assessing a deal, and the current market value when you are reviewing whether to keep a property you already own. The second number tells you what your capital is earning where it sits today.
Does rental yield include mortgage payments?
No. Yield measures the property, not the financing. Use the ROI, cashflow or buy-to-let profit calculators to bring the mortgage into the picture.
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.