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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. Ten per cent is a common working assumption; a leasehold flat with a service charge is usually higher.

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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