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Rental Yield Calculator UK
Rental yield calculator uk
UK rental yield from monthly rent and purchase price. Gross yield annualises rent; net yield subtracts the costs you enter. Optional mortgage shows cash flow.
On this page (tap to expand)
UK rental yield formula
Gross rental yield = (monthly rent × 12) ÷ purchase price. Net yield = (annual rent − annual costs) ÷ purchase price. Optional monthly mortgage shows cash flow. Not a tax or Section 24 model.
Example: £1,450 a month on a £320,000 purchase is £17,400 annual rent and 5.44% gross yield. £3,600 annual costs drops net yield to 4.31%.
Calculations follow the documented formula on this page; rounding and input units can change the last digit—treat outputs as educational estimates unless you reconcile with source systems.
* This is an estimate. Actual amounts may vary slightly based on input assumptions.
What this calculator does
- Rental Yield Calculator UK
- Calculate UK gross and net rental yield from monthly rent and price.
This is a buy-to-let screening ratio, not a tax computation. Stamp duty and mortgage interest are purchase or financing costs—leave them out of annual costs unless you are deliberately mixing definitions. Section 24 and income tax need a separate model.
UK rental yield from monthly rent and purchase price. Gross yield annualises rent; net yield subtracts the costs you enter. Optional mortgage shows cash flow.
Inputs on this page: Monthly Rent (GBP), Property Price (GBP), Annual Property Costs (GBP), Monthly mortgage (GBP, optional). Assumptions stay visible so you can reproduce the figure elsewhere.
When to use it
- Use Rental Yield Calculator UK when you need a transparent rental yield calculator uk answer before you commit numbers to a spreadsheet, invoice, or conversation.
- Reach for it when you already know (or can estimate) Monthly Rent (GBP) and want the dependent result without rebuilding the formula by hand.
- Skip it when you need certified advice, signed-off payroll, or a lender’s official quote—those require the primary institution’s systems.
Key takeaways
- Compare two listings only if both yields use the same definition (both gross or both net).
- Voids, letting fees, and compliance certificates belong in annual costs if you want a useful net figure.
- Optional monthly mortgage turns the same inputs into a cash-flow check: rent − costs/12 − mortgage. Section 24 is not modelled.
How to use this tool
- 1Enter monthly rent and property price in GBP.
- 2Enter annual recurring property costs for net yield estimation.
- 3Optionally enter the monthly mortgage payment you already have to see cash flow as well as yield.
- 4Compare multiple UK property scenarios using the same yield definition.
Guides and explainers
Long-form walkthroughs that pair well with this calculator. When you need narrative context beyond the live fields, start here and return to the tool to plug in your own numbers.
How does stamp duty work in England, Scotland and Wales? (2026)
SDLT, LBTT and LTT explained for 2026: first-time buyers, additional property, cash required, and why one UK calculator is enough.
Read guide →How Much Can I Rent My House For? (2026 UK Guide)
Find out what rent to charge in 2026. UK rental averages by region, the 4-6% yield rule, legal requirements, and a free rental income calculator.
Read guide →Rental yield vs monthly cash flow on investment property (2026)
Define gross rental yield vs levered monthly cash flow with a duplex-style example, compare scoreboards, and link to Toollabz rental yield, ROI, rent-vs-buy, and mortgage literacy guides.
Read guide →
Practical scenarios
UK landlords and buy-to-let buyers use this to screen a listing from monthly rent and asking price, then again with realistic annual costs. It is a first-pass yield check, not a full investment appraisal.
Continue in the Real estate tools collection or the glossary. Related calculators in this session: Stamp Duty Calculator UK, Property ROI Calculator, Loan Calculator, Mortgage Affordability Calculator, Rent vs Buy Calculator, Mortgage Affordability Calculator USA.
Key formula explained
How the calculation works
The Formula
Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100- Monthly Rent (GBP): the value you enter for monthly rent.
- Property Price (GBP): the value you enter for property price.
- Annual Property Costs (GBP): the value you enter for annual costs.
- Monthly mortgage (GBP, optional): the value you enter for monthly mortgage.
| This tool | Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100 |
|---|---|
| Related intent: rental yield calculator uk | See paired tools for rental yield calculator uk-each page documents its own core relationship next to the live form. |
| Related intent: uk buy to let yield calculator | See paired tools for uk buy to let yield calculator-each page documents its own core relationship next to the live form. |
Core relationship for Rental Yield Calculator UK:
Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100
Worked check: £1,450 pcm on a £320,000 purchase → £17,400 annual rent → 5.44% gross. £3,600 annual costs → 4.31% net.
Related calculations
Keep the same assumptions and open a neighbor calculator when your question branches: Stamp Duty Calculator UK, Property ROI Calculator, Loan Calculator, Mortgage Affordability Calculator. Each page documents its own formula beside the fields.
Learning links: Methodology · Editorial policy · Glossary
Worked real-world example
£1,450 a month on a £320,000 purchase is £17,400 annual rent and 5.44% gross yield. £3,600 annual costs drops net yield to 4.31%.
Re-enter the same numbers in the calculator above to confirm the page math matches the interactive result.
Who uses this tool?
UK landlords and buy-to-let buyers use this to screen a listing from monthly rent and asking price, then again with realistic annual costs. It is a first-pass yield check, not a full investment appraisal.
Common mistakes
- Entering weekly rent in the monthly field inflates yield by about 4.3×. Convert weekly × 52 ÷ 12 before you type monthly rent.
- Calling a gross yield “net” because you subtracted a mortgage payment mixes financing with operating return. This form’s net yield is rent minus the annual costs field, divided by price.
- Ignoring voids, letting fees, and certificates makes two postcodes look equally cheap to run. Put those pounds in annual costs when you compare listings.
References & sources
Official references for context. Calculator outputs are planning estimates—confirm material decisions with the primary authority or a qualified professional. See our methodology and editorial policy.
- Toollabz methodology — How we document formulas and update pages
- GOV.UK — Renting out your property
- GOV.UK — Private renting
Content last updated 2026-07-18
FAQs
Click a question to expand the answer.
How do I calculate rental yield in the UK?
Gross rental yield = (monthly rent × 12) ÷ property price × 100. Example: £1,450 a month on a £320,000 purchase is £17,400 ÷ £320,000 = 5.44%. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
What is the difference between gross and net rental yield?
Gross uses rent only. Net subtracts the annual costs you type (letting fees, insurance, maintenance, voids). Mortgage interest and Section 24 tax are not modelled here. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
What is a good buy-to-let yield?
There is no official “good” rate. Many landlords screen on gross yield first, then judge net yield, voids, and location risk. A higher percentage can still lose money after costs. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
Should stamp duty go in annual costs?
Stamp duty is a purchase cost, not a yearly operating cost. Leave it out of annual costs here and use the Stamp Duty Calculator UK for SDLT, LBTT or LTT. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
Does yield include house-price growth?
No. Yield is rental return versus price. Capital appreciation is a separate assumption. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
Can I see monthly cash flow as well as yield?
Yes. Enter optional monthly mortgage (interest-only or repayment — you type the payment). Cash flow = monthly rent − (annual costs ÷ 12) − mortgage. Section 24 tax and stamp duty are not modelled. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
Why compute both gross and net yield?
Gross is quick for screening; net better reflects true operating performance. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
Is Rental Yield Calculator UK a substitute for professional advice on rental yield calculator uk?
No. Treat this as a planning estimate. Confirm material decisions with HMRC, the IRS, a licensed adviser, or a clinician as appropriate. For Rental Yield Calculator UK, keep the inputs you used beside the result so the number can be checked later. The documented formula is Gross yield % = (monthly rent × 12) ÷ price × 100; Net yield % = (annual rent − annual costs) ÷ price × 100, and small changes to rates, rounding, dates, tax rules, regional assumptions, or percentage bases can change the final rental yield calculator uk result. Treat the output as a planning reference and confirm high-stakes decisions against official guidance or source systems.
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Built and maintained by Imtiaz Ahmad
Founder and lead engineer | Content updated July 18, 2026
See methodology and editorial policy.