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.
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% |
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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