Rental yield calculator

Estimate how much return your property investment could generate with both gross and net rental yield.

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This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

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Gross yield

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Net yield

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What is rental yield?

Rental yield measures the annual return you earn from a property compared to its value. It helps investors understand how well a property performs as an income-generating asset.

Gross Yield

Gross Yield shows the annual rental income as a percentage of the property’s purchase price.

Formula:
(Annual Rent ÷ Property Value) × 100

Example:
If a property costs £200,000 and generates £12,000 per year in rent:
(12,000 ÷ 200,000) × 100 = 6% Gross Yield

This gives a simple snapshot of potential return before any costs are taken into account.

Net Yield

Net Yield gives a more realistic view by factoring in running costs such as maintenance, insurance, management fees, and other expenses.

Formula:
((Annual Rent – Annual Costs) ÷ Property Value) × 100

Example:
If that same property has £2,000 in annual costs:
((12,000 – 2,000) ÷ 200,000) × 100 = 5% Net Yield

This figure provides a clearer picture of your actual profit after expenses.

How to use the calculator

  1. Enter the property’s purchase price.

  2. Add the expected monthly or annual rent.

  3. Include estimated annual costs (for maintenance, insurance, etc.).

  4. Include expected vacancy rate.
  5. Instantly see your Gross Yield and Net Yield.

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