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Tools / General / Rental Yield Calculator

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.

Use our stamp duty calculator for more details.

Gross rental yield:
Net rental yield:

Rental yield table

This table illustrates different monthly rents and the gross rental yield.

Monthly rentChangeGross yield
£1,000 - 3.9%

How is rental yield calculated?

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) and the stamp duty cost (£11,500) will give you the gross rental yield.

£12,000 / (£300,000 + £11,500) = 3.85%

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 (£12,000) and divide this value by the property value (£300,000) and the stamp duty cost (£11,500).

(£12,000 - £1,000) / (£300,000 + £11,500) = 3.53%

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.

Have you tried our Mortgage Calculator?

Find out how much your monthly mortgage repayments will be based on the property price, mortgage length and your deposit amount.

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