Rental Yield Calculator

Calculate your rental yield quickly using our UK property investment calculator.

Understand gross and net returns based on purchase costs or current property value to make smarter investment decisions.

Enter property details

Purchase cost
£
£
£
£
£
£
Purchase cost is worked out as purchase price plus the buying costs above.
Income and annual costs
£
£
Annual costs can include maintenance, insurance, service charges, letting fees, voids and mortgage payments.

Calculation results

Enter the property figures to calculate gross and net yield.

Gross rental yield

0.00%

Annual rent divided by the chosen property basis, before annual costs are removed.

Net rental yield

0.00%

Annual rent minus annual costs, divided by the chosen property basis.

Annual rental income £0
Annual costs used £0
Property basis used £0
Net annual income £0

This calculator provides an estimate only and does not replace professional financial, mortgage, or tax advice.

What Is Rental Yield?

Rental yield is a key metric used by property investors to measure the return on investment from a rental property. It shows how much income a property generates compared to its value or total purchase cost.

There are two main types:

  • Gross rental yield (before expenses)
  • Net rental yield (after costs)

Understanding both helps investors assess profitability and long-term performance.

How Our Rental Yield Calculator Works

Our calculator allows you to calculate yield using two methods:

  • Based on total purchase cost (including stamp duty, legal fees and refurbishment costs)
  • Based on current property value

Simply enter your monthly rent and annual costs to instantly calculate:

  • Gross rental yield percentage
  • Net rental yield percentage
  • Annual rental income
  • Net annual income

Why Rental Yield Matters for Property Investors

Rental yield is essential when evaluating UK property investment opportunities. It helps you:

  • Compare different investment properties
  • Understand potential returns
  • Factor in real costs such as maintenance and fees
  • Make informed investment decisions

Investors often use yield alongside capital growth forecasts to build a balanced portfolio.

Gross vs Net Rental Yield Explained

Gross rental yield is calculated using total annual rent divided by the property value or purchase cost.

Net rental yield goes further by deducting annual expenses such as:

  • Maintenance costs
  • Letting agent fees
  • Insurance
  • Service charges
  • Mortgage payments

Net yield provides a more realistic view of profitability.

Who Should Use This Calculator?

This tool is ideal for:

  • Buy-to-let investors
  • First-time property investors
  • Landlords reviewing portfolio performance
  • Investors analysing off-plan UK property investment opportunities

It is particularly useful when comparing multiple properties before purchase.

Plan Your Property Investment with Confidence

Understanding rental yield is essential when evaluating UK property investment opportunities.

Use this calculator alongside your financial planning to identify profitable investments, maximise returns and avoid unexpected costs.

Disclaimer

This rental yield calculator provides estimates for UK property investments and does not constitute financial, tax or mortgage advice.
Always seek professional guidance before making investment decisions.

Frequently Asked Questions

What is a good rental yield in the UK?
A good rental yield in the UK typically ranges between 5% and 8%, depending on location, property type and market conditions.
Rental yield is calculated by dividing annual rental income by the property value or total investment cost, then multiplying by 100 to get a percentage.
Gross yield is calculated before expenses, while net yield includes costs such as maintenance, fees and mortgage payments, giving a more accurate return.
Yes, including all costs such as stamp duty, legal fees, refurbishment and ongoing expenses provides a more accurate net yield figure.
Yes, rental yield is one of the most important metrics for buy-to-let investors as it helps assess profitability and compare investment opportunities.
Both methods are useful. Purchase cost shows return on investment, while current value reflects current market performance.
No, rental yield only measures rental income. Capital growth is a separate factor that contributes to overall investment returns.
Yes, rental yield can change based on property value, rental income, market demand and ongoing costs.

The calculator provides reliable estimates based on your inputs, helping you quickly assess potential returns.

Net rental yield is more important because it reflects real profit after expenses, giving a clearer picture of investment performance.

Download Our Property Investment Guide

Get a clear overview of EH Capital, our approach to UK off-plan property investment, and the types of developments we work with.
Our guide explains how we support investors, what to expect from the process, and how off-plan opportunities are sourced and assessed.

The guide covers:

  • Our approach to UK off-plan property investment and investor support
  • The types of off-plan developments we work with
  • How off-plan opportunities are sourced and reviewed
  • Key considerations, costs, and potential risks
  • What happens after you make an enquiry.
We respect your privacy and will only use your details to share relevant information.
UK off-plan property investment brochure explaining EH Capital’s approach and opportunities