Calculate gross and net rental yield for a property so you can quickly compare buy-to-let opportunities.
- What's the difference between gross and net yield?
- Net rental yield subtracts annual costs like maintenance, fees, and months with no tenant.
See below for more details.
Use this table to quickly compare what gross yield looks like at different monthly rent levels.
| Monthly rent | Change | Gross yield |
|---|---|---|
| £500 | -£500 | 1.9% |
| £600 | -£400 | 2.3% |
| £700 | -£300 | 2.6% |
| £800 | -£200 | 3.0% |
| £900 | -£100 | 3.4% |
| £1,000 | - | 3.8% |
| £1,100 | +£100 | 4.1% |
| £1,200 | +£200 | 4.5% |
| £1,300 | +£300 | 4.9% |
| £1,400 | +£400 | 5.3% |
| £1,500 | +£500 | 5.6% |
Rental yield is your yearly rental income as a percentage of the total property cost. It gives you a quick way to compare buy-to-let opportunities before deciding which properties are worth a closer look.
Many landlords target around 5% to 8%. What counts as good for you will depend on local demand, tenant quality, financing costs, and how much maintenance the property needs over time.
Gross rental yield
Take your annual rental income £12,000 and divide it by the property cost £300,000 + £20,000. That gives you the gross rental yield.
Net rental yield
For net rental yield, subtract your annual costs £1,000 from your annual rental income £12,000, then divide by the same property cost base shown above.
- Does stamp duty affect rental yield?
- Yes, stamp duty adds to your total property cost, so including it lowers your yield. This calculator includes stamp duty by default because it is a real upfront cost that affects your return from day one. You can toggle it off to see the gross headline yield in the results without it.
- What is the difference between gross and net rental yield?
- Gross yield is the headline number based on rent and purchase price. Net yield is what is left after yearly costs like maintenance, agent fees, insurance, and empty months, so it is usually the more useful figure for decision-making. The calculation section breaks the difference down.
- What is considered a good rental yield in the UK?
- A lot of landlords look for something around 5% to 8%. That said, it depends on location, tenant demand, property type, and your costs. A lower yield can still work if your costs are low or you expect stronger long-term capital growth. See what is a good rental yield? for more context.
- How can I improve my rental yield?
- The usual levers are increasing rent carefully, cutting running costs, and reducing empty periods between tenants. Switching to a better mortgage rate and making energy-efficiency upgrades can also improve your net yield.
- How does buy-to-let rental income compare to other investments?
- Rental income tends to be steadier than some investments, but your return is still shaped by costs, tax, and periods without a tenant. If you want to compare that with compounding from regular contributions, try the Compound Interest Calculator. For a decision this size, it is worth speaking to an independent financial adviser who can look at your full picture.
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