Rental yield calculator
Rental Yield Calculator 2026/27
Calculate gross and net rental yield on a UK buy-to-let property.
Property details
Leave blank or 0 if buying cash.
Only needed if you have a mortgage.
Your results
Gross rental yield
6%Annual rent / property price
Net rental yield
6%After mortgage interest
Monthly rent
£1,250Annual rent
£15,000Annual interest
£0Where your rental income goes
How to Calculate Rental Yield
Gross rental yield is simply annual rent divided by the property price, multiplied by 100 to get a percentage. It gives you a quick snapshot of the return before any costs.
Net rental yield subtracts mortgage interest costs from the annual rent before calculating. This gives a more realistic picture of your actual return if you have a buy-to-let mortgage.
A gross yield above 5% is generally considered good in the UK. Below 4% suggests the property may be expensive relative to its rental income, though yields vary significantly by region.
Frequently asked questions
What is a good rental yield?
In the UK, a gross rental yield above 5% is generally considered good. Yields vary by region: northern cities like Liverpool and Manchester often offer 6-8%, while London properties may yield 3-4%. Remember that higher yields sometimes correlate with lower capital growth potential.
Does this include other landlord costs?
This calculator only deducts mortgage interest. Real net yield should also account for letting agent fees (typically 8-12% of rent), maintenance, insurance, void periods and income tax on rental profits. Use this as a starting point, not the full picture.
How does stamp duty affect my yield?
Stamp duty is a one-off purchase cost, not an ongoing expense, so it doesn't directly affect your annual yield. However, it increases your total investment, which reduces your return on capital. Use the Stamp Duty Calculator to factor it into your overall investment analysis.