Free landlord tool
Rental Yield Calculator (UK)
Work out the gross and net rental yield on any UK buy-to-let in seconds. Enter the purchase price, monthly rent and running costs — we handle the rest. No signup, no email required.
Property & rent
Annual running costs
Your results
- Annual rent
- £14,400
- Annual running costs
- £2,844
- Net income (year)
- £11,556
- Net income (month)
- £963
How to calculate rental yield
Rental yield is the annual rent a property produces expressed as a percentage of its value. It's the single most useful number for comparing buy-to-let opportunities across the UK — from a two-bed terrace in Sunderland to a Zone 3 London flat.
Gross rental yield
Gross yield (%) = (Monthly rent × 12) ÷ Purchase price × 100
Example: a £200,000 flat let at £1,200/month generates £14,400/year. Gross yield = 14,400 ÷ 200,000 × 100 = 7.2%.
Net rental yield
Net yield (%) = (Annual rent − Annual costs) ÷ (Purchase price + Purchase costs) × 100
Net yield is what actually matters. Costs to include: letting agent fees, landlord insurance, maintenance, ground rent and service charges, and a void allowance for empty periods between tenancies.
What's a good rental yield in the UK?
- 3–5% — typical for London and the South East. Capital growth compensates.
- 5–7% — the UK average for most buy-to-lets.
- 7–10%+ — common in Northern cities (Manchester, Liverpool, Nottingham, Sunderland) and student HMOs.
Costs landlords forget
- Gas Safety, EICR and EPC renewals (£70–£250 each)
- Deposit protection and tenancy paperwork
- Selective licensing in some councils (£500–£1,000 per property)
- Mortgage arrangement fees and product renewal costs
- Accountant fees and Self Assessment
Once you've bought it — stay compliant
RentDocs stores your certificates, chases rent by SMS, generates 2026-compliant tenancy agreements and tracks every renewal — so your net yield doesn't get eaten by a £30,000 compliance fine.
Rental yield FAQ
Is gross or net rental yield more important?
Net yield. Gross is fine for quick comparisons between listings, but only net yield reflects what actually reaches your pocket after agent fees, insurance, maintenance and voids.
Should I include the mortgage in the yield?
No — rental yield measures the property, not the financing. To measure return on your cash, look at cash-on-cash return, which uses your deposit plus fees as the denominator and rent minus mortgage interest as the numerator.
Does rental yield include capital growth?
No. Yield is income only. Total return = rental yield + capital growth. Low-yield London flats often win on total return over long horizons; high-yield Northern properties win on cashflow today.