Rental Yield Calculator
Work out the gross yield, net yield and monthly cash flow on any rental property. Add a deposit and mortgage payment to see the return on the cash you actually put in.
Explain like I'm 5
You own a flat worth £200,000. It rents for £1,000 a month, so £12,000 a year. Gross yield is £12,000 ÷ £200,000 = 6%. Out of that £12,000, you spend £2,000 on insurance, repairs, letting agent and the odd empty month. So you actually keep £10,000, which is 5% of the flat's value. That 5% is your net yield.
Rental yield and cash flow
- Annual rent–
- Annual running costs–
- Net annual income (before mortgage)–
- Gross yield–
- Net yield–
Cash-on-cash return
- Annual mortgage payments–
- Monthly cash flow (after mortgage)–
- Annual cash flow–
- Return on deposit–
Show workings
Gross versus net versus cash-on-cash
Three different numbers, three different jobs. Gross yield is the fastest filter: annual rent divided by property value. It lets you compare a dozen listings in a couple of minutes. Net yield subtracts the running costs that come with being a landlord. Cash-on-cash goes one step further and measures the return on the actual cash you put into the deal, factoring in the mortgage. A property can have a middling net yield but a very strong cash-on-cash return if you are leveraged sensibly, and vice versa.
Which costs to include
The costs field is where most back-of-envelope rental yield calculations quietly lie. Realistic annual costs for a UK let usually include: letting agent fees (10% to 15% of rent if fully managed), maintenance and repairs (budget roughly 1% of property value per year), landlord insurance (a few hundred pounds), a void allowance for empty months between tenants, ground rent and service charges if leasehold, gas safety and electrical certificates, and any mortgage product fees amortised over the fixed term. Leave any of these out and your yield number flatters reality.
Mortgage stays out of yield
Yield is a property-level metric, not a deal-level one. Two landlords can buy the same flat, one cash and one with a 75% buy-to-let mortgage, and the property's yield is identical for both. What differs is their cash flow and return on cash invested. This calculator keeps mortgage out of gross and net yield and puts it in the optional cash-on-cash section instead. That split is deliberate: it stops you from double-counting interest and lets you compare yields across properties on the same footing.
Related calculators
Yield is the start. These are the other numbers a landlord or buyer ends up running.
Common questions
What is a good rental yield?
5% to 8% gross is a reasonable benchmark for UK buy-to-let. High-value southern cities often come in lower (3% to 5%), regional towns and northern cities higher (6% to 10%+). Net yield is usually 1.5 to 2.5 percentage points below gross once running costs are subtracted.
What is the difference between gross and net yield?
Gross yield is annual rent ÷ property value. Net yield subtracts annual running costs first. Gross is a quick comparison metric. Net is closer to what you actually earn before mortgage and tax.
Should mortgage interest be included in yield?
No. Yield measures what the property itself returns, independent of how the deal is financed. Mortgage payments affect cash flow and return on deposit, which are separate numbers. This calculator keeps them apart so you can compare properties fairly.
What is cash-on-cash return?
It is the annual cash flow (net rent minus mortgage) divided by the cash you put into the deal (deposit plus stamp duty, legal fees and any refurb). It shows the percentage return on the money you actually risked. Usually the number investors care about most.
Does this calculator handle tax?
No. Income tax, the Section 24 mortgage interest restriction for individual landlords, and capital gains on sale are all separate and depend on your personal situation. Ask an accountant before buying.