Rental yield calculator
Work out the gross yield, net yield, monthly cashflow and return on cash invested for any UK buy-to-let. Built for landlords — Section 24 mortgage interest treatment, void allowance and management fees all factored in. Updates as you type.
Property & income
Stamp duty, legal fees, survey, mortgage arrangement fee
Percentage of purchase price you put in as cash
Annual expenses
Annual interest only — capital repayments don't reduce yield
Buildings, landlord, contents, rent guarantee
Percentage of collected rent paid to agent
Percentage of annual rent you assume you'll lose to empty periods
Accountancy, licence fees, anything else
Gross yield
6.60%
£13,200 rent / £200,000 price
Net yield
1.90%
After £9,214 expenses
Monthly cashflow
£332
Profit after expenses
Return on cash invested
6.64%
On £60,000 cash deployed
Verdict — Healthy gross yield
5–8% is a healthy gross yield for a standard UK buy-to-let. Plenty of margin for expenses and Section 24 tax once mortgages are factored in.
Annual breakdown
- Rent collected (gross)
- £13,200
- Void loss (5%)
- −£660
- Management fee (10%)
- −£1,254
- Mortgage interest
- −£6,000
- Maintenance + insurance + service + other
- −£1,300
- Net profit (before tax)
- £3,986
Section 24 note for higher-rate taxpayers: if you own the property personally (not in a company), mortgage interest is no longer fully deductible — you get a 20% tax credit instead. This calculator shows pre-tax profit. If your income pushes you into the 40% or 45% band, your after-tax yield will be lower than shown here.
Already running rentals? RentFig tracks the real numbers
Yield calculators give you the plan. RentFig gives you actual cashflow — rent received, expenses logged, profit reported, ready for Self Assessment. Free for one property.
UK rental yield — FAQ
The most common questions UK landlords ask about calculating and comparing rental yield.
- What is rental yield?
- Rental yield is the annual rental income from a property expressed as a percentage of the property's value. Gross yield uses the rent before expenses; net yield deducts running costs like mortgage interest, maintenance, insurance, management fees and void periods.
- How is rental yield calculated in the UK?
- Gross yield = (monthly rent × 12) ÷ purchase price × 100. Net yield = (annual rent − annual expenses) ÷ (purchase price + buying costs) × 100. UK landlords usually compare both, because mortgage interest and Section 24 tax make net yield far more meaningful than gross.
- What is a good rental yield in the UK?
- It depends on the strategy and location. 5–8% gross is a healthy single-let yield in most of the UK. London and the South East often sit at 3–5% (capital growth makes up the difference). HMOs, student lets and northern English cities typically achieve 8%+ gross. Anything under 3% gross is hard to make work after costs.
- Should I use gross or net yield to compare properties?
- Use gross yield as a quick filter; use net yield (and monthly cashflow) to decide. Two properties with the same gross yield can have very different net yields once leasehold service charges, mortgage interest and management fees are factored in.
- How does Section 24 affect my rental yield?
- Section 24 (in force since 2017) means mortgage interest is no longer deductible from rental income — instead you get a 20% tax credit. For 40% / 45% taxpayers owning rentals personally, this can dramatically reduce after-tax yield. The calculator shows pre-tax profit; budget for the tax credit shortfall separately, or consider holding through a limited company.
- What expenses should I include when calculating net yield?
- Mortgage interest (annual), maintenance and repairs, landlord and buildings insurance, letting/management fees (% of rent), service charge and ground rent for leasehold flats, an allowance for void periods (typically 4–8% of annual rent), and any licensing fees. Capital repayments aren't an expense for yield purposes — they build equity, not lose income.