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.
Rental yield table
This table illustrates different monthly rents and the gross rental yield.
|Monthly rent||Change||Gross yield|
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.
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).
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.
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