Rental Yield Calculator

Quickly estimate the potential return on your rental property investment using our Rental Yield Calculator. Just enter the property's purchase price or current market value, monthly rental income, and annual running costs to see your gross and net rental yield percentages. This simple yet effective tool helps landlords and investors assess the profitability of their properties with ease.
 

Yield Calculator

Gross Yield

0.00%

(Without running costs)

Net Yield

0.00%

(With running costs)

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How Do I Calculate Rental Yield?

  • Input the property's purchase price or current market value.
  • Enter the expected monthly rental income based on local market conditions or existing tenancy agreements.
  • Add estimated annual running costs such as insurance, maintenance, and service charges, if available.
  • Click calculate to instantly see your gross and net rental yield percentages.
Please note: Yield results are estimates. Actual returns depend on factors like property specifics, location, and your personal financial circumstances.

FAQs

Rental yield is the percentage return a property generates based on its rental income compared to its purchase price. It’s a key metric for landlords and investors to gauge profitability. Our calculator provides quick, reliable estimates using your property price, rental income, and expenses.

To calculate gross rental yield, multiply the monthly rent by 12 to get annual income, then divide by the property price and multiply by 100. For example, £1,200 monthly rent on a £240,000 property is: (1,200 × 12) ÷ 240,000 × 100 = 6%. To find net yield, subtract annual costs from income before dividing by the purchase price.

Rental yield helps landlords understand their property's income potential and return on investment. A higher yield means better income to cover mortgage repayments, maintenance, and other costs. It’s also a useful comparison tool when choosing between properties or evaluating your rental portfolio’s performance.

How Can I Optimise My Rental Yield?

  • Set competitive rent: Research comparable properties to price your rental appropriately—high enough to maximise income, but competitive to attract tenants quickly.
  • Reduce vacancy periods: Keep your property well-maintained and respond promptly to tenant needs. Flexible lease terms and pet-friendly policies can broaden your tenant pool.
  • Control running costs: Review your annual expenses including insurance, repairs, and management fees. Negotiating contracts or shopping around can boost your net yield.

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