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UK Calculators

Buy-to-Let Rental Yield Calculator

Calculate gross rental yield and net yield before financing and tax for a UK rental property.

Last reviewed

Buy-to-Let Rental Yield Calculator

Gross rental yield

6%

Net rental yield4.57%
Annual rent£12,000.00
Annual income after running costs£9,600.00

Reading the result

Enter expected collected rent after void periods, or include void costs in running costs, but do not deduct them twice.

How it works

Gross yield is annual rent divided by property value. Net yield deducts annual running costs and divides by property value plus purchase costs.

Worked examples

Worked example

Property value (£): 200000; Average monthly rent collected (£): 1000; Annual running costs (£): 2400; One-off purchase costs (£): 10000

  1. Gross yield is annual rent divided by property value. Net yield deducts annual running costs and divides by property value plus purchase costs.
  2. Net rental yield: 4.57%
  3. Annual rent: £12,000.00
  4. Annual income after running costs: £9,600.00

Gross rental yield: 6%

Assumptions

The result depends on the following. If any of them do not match your situation, treat the figure as indicative only.

  • Enter expected collected rent after void periods, or include void costs in running costs, but do not deduct them twice.

What this calculator does not do

  • Mortgage payments, finance-cost tax treatment, Income Tax, capital growth and selling costs are excluded. Negative net income is shown rather than hidden.

Methodology

Gross yield is annual rent divided by property value. Net yield deducts annual running costs and divides by property value plus purchase costs.

Inputs are processed locally. Displayed amounts are rounded; the calculation retains precision.

Frequently asked questions

What costs belong in net yield?

Include management fees, maintenance, insurance, service charges and other annual operating costs. Keep mortgage financing separate.

Is rental yield the same as return on my deposit?

No. Yield compares rent with property value or total purchase cost, not the cash deposit used with borrowing.

Please note: Results are estimates for general information only and are not financial, tax or legal advice. Figures depend on the assumptions listed on each page and on your personal circumstances.

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