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Rental Yield Calculator
Work out the gross and net rental yield on a property. Enter the monthly rent, the price and your running costs to see the annual return, and how it compares with what counts as a good yield.
Yield is the property's return against its price. An estimate to help you compare, not financial advice.
- Gross yield
- 6.0%
- Net yield
- 4.8%
- Annual rent
- £12,000
- Income after costs
- £9,500
As a rough guide, a net yield of around 5% to 8% is strong in much of the UK, though it varies a lot by area. See what counts as a good rental yield.
How rental yield works
Rental yield turns the rent a property earns into a percentage of its price, so you can compare very different properties on the same footing. Gross yield is the annual rent divided by the price. Net yield does the same after taking off the running costs, which is the figure that reflects what you actually keep.
It does not include the mortgage, so if you are borrowing to buy, look at the yield alongside the cost of the loan rather than on its own. Our mortgage repayment calculator shows what the monthly payments would be.
Common questions
What is rental yield?
Rental yield is the annual rent a property earns as a percentage of its price. It is the quickest way to compare the income from one buy-to-let with another, or with a different kind of investment. A £200,000 property let for £1,000 a month earns £12,000 a year, which is a 6% gross yield.
How do I work out rental yield?
Take the annual rent, divide it by the property price, then multiply by 100. So £12,000 of rent on a £200,000 property is 12,000 ÷ 200,000 × 100, which is 6%. For the net yield, take your running costs off the rent first.
What is the difference between gross and net yield?
Gross yield is the rent alone against the price. Net yield takes off the running costs first, such as letting fees, maintenance, insurance and empty months, so it is a truer picture of what you keep. Net yield is always lower than gross, and the gap is the cost of running the property.
What is a good rental yield?
As a rough guide, a net yield around 5% to 8% is considered strong in much of the UK, though it varies by area. Lower-priced areas in the north tend to show higher yields; pricier areas in the south often show lower yields but more potential for the value to rise. Treat any single figure as a starting point, not a verdict.
Does rental yield include the mortgage?
No. Yield measures the property's return against its price, so it does not factor in how you paid for it. If you have a buy-to-let mortgage, the interest is a real cost that eats into your actual return, so look at it alongside the yield rather than instead of it.
How can I improve the yield?
You can lift the rent in line with the local market, cut running costs, reduce empty periods between tenants, or buy at a lower price in the first place. Small changes to costs and voids can move the net yield more than you might expect.
About this calculator
Rental yield is plain arithmetic rather than a fixed rate, so there is no statutory figure to quote; we checked the general points and the benchmark ranges against MoneyHelper and UK letting guides. The figures here are estimates to help you compare, not financial advice. Last updated June 2026.