Landlords & Property2 min check

Rental Yield Calculator

Estimate gross and net rental yield for a buy-to-let property by entering price, rent and key costs.

Short answer

Gross yield = (annual rent ÷ property value) × 100. Net yield deducts running costs (insurance, maintenance, void periods, agent fees, ground rent). Most UK BTLs target 5–8% gross / 3–5% net. London tends to be lower (3–5%); the North often higher (8–12%).

Step 1 of 20%

Calculation method, coverage and version

Inputs used: Property price (or market value), Monthly rent, Annual mortgage interest, Annual maintenance budget, Letting agent fees (% of rent), Estimated void weeks per year.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Landlords & Property. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

How it works

Gross yield ignores all costs. Net yield is the realistic return: (annual rent − annual running costs) ÷ property value × 100. ROI on cash deposit is even higher because mortgage gearing amplifies returns (and losses).

Worked example

£200k house, £950/m rent = £11,400/year. Gross yield 5.7%. Less £400/m mortgage interest, £700 insurance, £700 agent, £1k maintenance, 1 month void → net £4,250 ÷ £200k = 2.1% net.

Who should use this

•First-time landlords screening properties
•Investors comparing North vs South opportunities
•Anyone reviewing existing portfolio performance

Common mistakes

×Quoting gross yield as if it's profit (it isn't)
×Forgetting void periods (assume at least 1 month/year)
×Ignoring Section 24 mortgage interest restrictions for individuals
×Not accounting for major works (roof, boiler) in long-run yield

Frequently asked questions

What's a good rental yield in the UK?▾

5%+ gross is decent. 8%+ is strong but often higher risk areas. London 3–5%, Manchester/Liverpool 6–9%.

Should I buy via a Ltd Co?▾

Often yes if higher-rate taxpayer or building a portfolio — but mortgages are pricier and you pay corporation tax + dividend tax to extract profit.

What's the 1% rule?▾

US rule of thumb: monthly rent ≥ 1% of price. Rare in the UK now — 0.5–0.6% is typical.

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