🔑 Rental Yield Calculator

Gross & net yield and ROI — for buy-to-let and investment property

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Insurance, maintenance, repairs, letting agent fees
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Stamp duty, solicitor, survey etc.
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Industry average: 3–4 weeks/year void

Rental Yield Summary

Gross Rental Yield—
Net Rental Yield—
Annual Rent (gross)—
Annual Rent (after void)—
Net Annual Income—
Return on Investment (ROI)—
⚠️ These figures are pre-tax. Rental income is subject to income tax. See our income tax calculator and consult a tax adviser regarding your rental income position.

What is Rental Yield?

Gross rental yield is simply your annual rent divided by the property value, expressed as a percentage. It ignores all costs. Net rental yield deducts all running costs and gives a much more accurate picture of your actual return.

What is a Good Rental Yield in the UK?

Gross yields vary significantly by region. In London, yields of 3–4% are common but capital growth potential tends to be higher. In northern cities like Manchester, Liverpool and Birmingham, gross yields of 6–8%+ are achievable. A net yield of 4%+ is generally considered acceptable for buy-to-let.

💡 Remember: A high gross yield often means high management costs or high void risk. Always calculate net yield before deciding on a purchase.

Section 24 Mortgage Interest Restriction

Since April 2020, landlords can no longer deduct mortgage interest directly from rental income. Instead, they receive a 20% tax credit on mortgage interest payments. For higher-rate taxpayers this significantly increases the effective tax rate on rental income. Always model your post-tax position before purchasing.