Rental Yield Calculator
Estimate the yield on a UK buy-to-let property. Enter the purchase price, expected monthly rent, and running costs to see both the gross yield and a more realistic net yield after voids, agent fees, and maintenance — the figure most landlords actually care about.
How is this calculated?
Gross yield is annual rent ÷ purchase price × 100. Net yield deducts annual operating costs — letting agent fees, landlord insurance, maintenance, ground rent or service charges, and an allowance for void periods — before dividing by the purchase price (or by the cash invested if you want cash-on-cash return). The calculator does not deduct income tax or mortgage interest, so the net yield shown is a property-level return rather than the post-tax return on your equity.
Frequently Asked Questions
What counts as a good rental yield in the UK?
5%–8% gross is generally considered healthy. London tends to sit at the lower end (3%–5%) due to high capital values, while parts of the North East, Yorkshire, and the Midlands routinely deliver 7%+. Net yields land 1.5–2.5 percentage points below gross once costs are stripped out.
Which costs should I include for a realistic net yield?
Letting agent fees (typically 8%–12% of rent for full management), landlord insurance, gas safety and EICR checks, an annual maintenance allowance of around 10% of rent, ground rent or service charge for leasehold flats, and a void allowance of 4–6 weeks per year.
Are mortgage interest and tax included?
No. The yield is a property-level metric so you can compare deals like-for-like. Personal landlords now receive a 20% basic-rate tax credit on mortgage interest rather than full deduction, so post-tax cash flow can differ sharply from the headline yield. HMRC guidance on gov.uk explains the rules.
How does Council Tax fit in during voids?
Once a tenancy ends, the landlord becomes liable for Council Tax. Some councils still grant a short empty-property discount but many no longer do, so a sensible void allowance now bakes in 4–6 weeks of full Council Tax alongside lost rent.
Last updated: May 2026 · Rates sourced from HMRC