Rental Yield Calculator
Work out the gross and net rental yield on a buy-to-let property in seconds. Factor in running costs, letting agent fees and void periods for a realistic return.
Calculate Your Rental Yield
Enter your property value and expected rental income to instantly see your gross yield, and add your running costs to see a more realistic net yield.
Yield Calculator
Compare gross yield against a cost-adjusted net yield.
How it Works
Understanding rental yield calculations
Annual Rental Income
We multiply your monthly rent by 12 to establish the full annual income the property could generate at 100% occupancy.
Deduct Running Costs
Letting agent fees, maintenance, insurance, ground rent and lost rent from void periods are added together as your total annual costs.
Gross Yield
Annual rental income is divided by the property purchase price to give a simple, cost-free gross yield percentage.
Net Yield
We subtract total annual costs from annual income, then divide by the purchase price to give a more realistic net yield percentage.
Typical Rental Yield Benchmarks
A general overview of gross rental yield ranges seen across different UK property markets.
| Region Type | Typical Gross Yield | General Characteristics |
|---|---|---|
| London & South East | 3% – 5% | Higher property prices, stronger capital growth potential |
| Midlands & East England | 5% – 7% | Balance of affordability and rental demand |
| North West & North East | 6% – 9% | Lower purchase prices relative to achievable rent |
| Scotland | 6% – 8% | Strong yields in cities such as Glasgow and Dundee |
| Student & HMO Property | 7% – 10%+ | Higher yields but greater management intensity |
Rental Yield FAQ
Answers to the most frequently asked questions about calculating and interpreting rental yield in the UK.
Rental yield is the annual rental income a property generates, expressed as a percentage of its value. It is one of the main measures landlords and property investors use to compare how well different properties perform financially.
Gross rental yield only looks at annual rental income against the property price, ignoring costs. Net rental yield deducts running costs such as maintenance, insurance, letting agent fees, ground rent and void periods first, giving a more realistic picture of actual returns.
Many investors consider a gross yield of 5% to 8% to be reasonable in the UK, though this varies significantly by region. Yields tend to be higher in the North of England and parts of Scotland, and lower in London and the South East where property prices are higher relative to rents.
Void periods are weeks in the year when the property sits empty between tenants and earns no rent. Even a few weeks of vacancy can meaningfully reduce your net yield, so it is sensible to build an estimated void period into your calculations rather than assuming full occupancy.