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All toolsRental yield calculator

Rental yield calculator

What a property yields, gross and after costs, from the price and the rent.

Your figuresDeterministic calculation
Void allowance5%
0%30%

The share of the year you expect the property to be empty or unpaid.

Operating costs10%
0%50%

One bucket for everything that recurs — letting and management fees, maintenance, service charge, insurance — as a share of the rent you collect. Use your own cost evidence; the starting percentage is an editable example.

Yield before finance and before tax. Mortgage interest, purchase costs and your own tax position are not included, and no rent or price is estimated for you.

Net yield4.1%After voids and operating costs, on the price paid.
Gross yield4.8%Headline annual rent on the price. Ignores every cost.
Annual rent
£21,600
Less void allowance
£1,080
Less operating costs
£2,052
Net income a year
£18,468
Net income a month
£1,539

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Compare rental income with the purchase price

The rental yield calculator separates headline rent from income after your allowance for empty periods and running costs. Every result depends on the figures you supply.

How the tool works

  1. Enter the purchase price and monthly rent supported by your own research.
  2. Set a void percentage for rent not collected and an operating-cost percentage.
  3. Compare gross yield, net operating yield and annual income, then test less favourable assumptions.

When to use it

Use it to compare potential buy-to-let purchases on consistent assumptions, or to check how a change in rent, repairs or occupancy affects an existing plan. Keep a separate cash budget for acquisition costs and major works.

UK coverage and assumptions

Gross yield is annual rent divided by price. This tool deducts voids first and applies the operating-cost percentage to the remaining rent. Net yield is before mortgage payments and tax; it is not a forecast of total investment return or a local market rent estimate.

Frequently asked questions

What is the gross rental yield formula?

Multiply monthly rent by 12, divide by purchase price and multiply by 100. This percentage ignores running costs, voids, borrowing and tax.

How does this calculator work out net yield?

It subtracts the void allowance from annual rent, deducts operating costs as a percentage of the remaining rent, then divides net operating income by purchase price and multiplies by 100.

Is there one good rental yield for the UK?

No single percentage establishes a sound purchase. Property condition, location, financing, lease costs, management effort and uncertainty all matter. Compare like-for-like assumptions rather than a headline target.

Does net yield include mortgage payments or income tax?

No. Debt service and your tax position need a separate calculation. A property can show a positive operating yield while leaving little or negative cash after borrowing costs.