Rental yield calculator

Enter the price and rent, then adjust the running costs. You'll see gross yield, net yield and what's left each month after the mortgage.

Rates checked 3 November 2026 Checked by Daniil Shumko, editor

Rental yield calculator

£
£
Running costs
% of rent
weeks
£/yr
£/yr
£/yr
£/mo

Net yield, before mortgage and tax

4.4%
Gross yield6.0%
Running costs a year£4,027
Cash flow a month, after mortgage£914

Gross yield is a year's rent divided by the price. Net yield takes off running costs and empty weeks first. Neither includes income tax, which for many landlords rises from April 2027: see the landlord tax calculator.

Gross yield and net yield

Gross yield is quick for comparing listings, but it flatters every property. Net yield is closer to what you keep: it takes off letting fees, repairs, insurance, service charges and the rent you lose while the property is empty. Neither figure includes income tax or mortgage interest, which is why this calculator also shows monthly cash flow after your mortgage payment.

Average rents across the UK were £1,406 a month in September 2026, up 3.8% on a year earlier, according to the ONS. That average hides big differences: £1,466 in England against £848 in Wales.

Common questions

How do you calculate rental yield?

Gross yield is a year's rent divided by the purchase price, times 100. A £250,000 flat let at £1,250 a month earns £15,000 a year, a gross yield of 6%. Net yield takes running costs off the rent first.

What is a good rental yield in the UK?

There's no single answer, because yields vary a lot by area and property type. Compare net yields, not gross, and remember that a higher yield often comes with more management work or more risk.

Should yield include stamp duty and buying costs?

For a stricter view, add your buying costs to the price. On a £250,000 buy-to-let in England, stamp duty alone is £15,000 including the 5% surcharge. See the stamp duty calculator.

Sources

  1. ONS: Private rent and house prices, UK

This calculator gives a general figure, not tax, legal or financial advice. Where the government publishes worked examples, we test it against them. Found a problem? Tell us.