Rental yield calculator
Work out the gross and net yield on a buy-to-let, plus the return on the cash you put in, so you can compare properties properly.
Work out your yield
The short answer
- Gross yield = yearly rent ÷ property price × 100.
- Net yield takes off running costs first, so it's a truer picture.
- Return on cash shows what you make on the money you actually put in, after the mortgage.
Figures are before Income Tax. Use the Section 24 calculator to see the tax. Not financial advice.
Which yield should I use?
Gross yield is quick for comparing listings, which is why agents quote it. Net yield is better for deciding whether a property actually pays, because costs vary a lot between, say, a new-build flat with a service charge and an older house. If you've got a mortgage, return on cash is the figure that tells you how hard your own money is working.
Remember to allow for empty months between tenants, and for bigger one-off costs like a new boiler.
Frequently asked questions
What's a good rental yield in the UK?
It depends on the area. Gross yields tend to be higher in places with lower house prices and lower in expensive areas, where landlords often rely more on prices rising. Compare against similar properties in the same area rather than a single national figure.
Should I include mortgage payments in net yield?
Usually not. Net yield measures the property itself, so it's comparable whether or not there's a mortgage. The mortgage is included in the return on cash figure instead.
Should I use the purchase price or current value?
Use the purchase price to judge a property you're buying. Use the current value to see whether the money tied up in a property you already own is working hard enough.
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