Rental Income Calculator
Estimate your monthly profit, gross and net rental yield, and annual returns after mortgage payments and landlord expenses.
Calculate Your Rental Returns
Enter your property details, expected rental income, and ongoing costs to instantly see your projected monthly profit and overall rental yield.
Property & Income Details
Compare your expected rental income against mortgage and running costs.
How it Works
Understanding rental yield and profit
Calculate Gross Income
We multiply your monthly rental income by 12 to determine your total annual rental revenue before any costs are deducted.
Estimate Mortgage Costs
Using your loan amount, interest rate, and term, we calculate your estimated monthly capital and interest repayment.
Deduct Running Expenses
We subtract average monthly costs like maintenance, landlord insurance, and management fees from your rental income.
Reveal True Yield
Net yield is calculated by dividing your annual profit by the property value, giving you a realistic percentage return on your investment.
Typical Landlord Expenses
A general overview of common ongoing costs associated with renting out a property in the UK.
| Expense Type | Typical Cost Range | Tax Deductible? |
|---|---|---|
| Letting Agent Management | 8% – 15% of monthly rent | Yes |
| Landlord Insurance | £150 – £300 per year | Yes |
| Maintenance & Repairs | 1% – 2% of property value/year | Yes (not improvements) |
| Safety Certificates (Gas/EPC) | £100 – £250 per year | Yes |
| Ground Rent / Service Charge | Varies widely by property | Yes |
| Void Periods (Unrented time) | 1 – 2 months rent/year (avg) | N/A (lost income) |
Rental Income FAQ
Answers to the most frequently asked questions about rental yields, profits, and landlord expenses in the UK.
Rental yield is the percentage return on a property investment. Gross yield is calculated by dividing the annual rental income by the property value. Net yield factors in all ongoing costs, such as mortgage payments, maintenance, insurance, and management fees, providing a more accurate picture of your actual profit.
Allowable expenses include letting agent fees, property maintenance and repairs, landlord insurance, safety certificates (gas, electrical), accountancy fees, and ground rent or service charges. Note that mortgage capital repayments are not tax-deductible, though mortgage interest relief may apply depending on your tax situation.
Monthly rental profit is calculated by taking your total monthly rental income and subtracting your monthly mortgage payment (if applicable) and all other average monthly expenses (maintenance, insurance, management fees, etc.).
While it varies by region, a good net rental yield in the UK is typically considered to be between 5% and 8%. Yields above 8% are often found in northern cities or student accommodation areas, though these may come with higher management demands or void period risks.