This simple-to-use rental yield calculator allows you to calculate the gross and net rental yield for a property, so that you can evaluate the property potential.
- What's the difference between gross and net yield?
- Net rental yield takes into account the annual cost.
See below for more details.
Rental yield table
This table illustrates different monthly rents and the gross rental yield.
| Monthly rent | Change | Gross yield |
|---|---|---|
| £500 | -£500 | 1.9% |
| £600 | -£400 | 2.3% |
| £700 | -£300 | 2.7% |
| £800 | -£200 | 3.1% |
| £900 | -£100 | 3.5% |
| £1,000 | - | 3.9% |
| £1,100 | +£100 | 4.2% |
| £1,200 | +£200 | 4.6% |
| £1,300 | +£300 | 5.0% |
| £1,400 | +£400 | 5.4% |
| £1,500 | +£500 | 5.8% |
What is rental yield?
Rental yield is the return you will make from renting out a property in percentage terms. Landlords and investors use rental yield to evaluate the value of property investments.
What is a good rental yield?
As a rule of thumb, 5% - 8% is considered a reasonable level of rental yield. However, this will depend on the location and area of the property, because different parts of the country may deliver better (or worse) returns.
How to calculate rental yield?
Gross rental yield
It is quite simple to calculate the rental yield for a property.
The annual rental income £12,000 divided by the value of the property £300,000 plus the stamp duty cost £11,500 will give you the gross rental yield.
Net rental yield
If you would like to calculate the net rental yield, all you need to do is subtract the annual cost £1,000 from the annual rental income £12,000and divide this value by the property value £300,000 and the stamp duty cost £11,500.
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