Rental Yield Calculator
Enter the property value, rent and running costs — the calculator shows your gross yield, two net yield figures (on property value, and on total cost including acquisition costs), and — if you enter a deposit below 100% — your leveraged cash-on-cash return, with the full breakdown of where every pound of rent goes.
5.57% gross rental yield
Net yield (on property value): 3.39% · Net yield (on total cost incl. acquisition costs): 3.30%
Cash-on-cash return: 3.30% (cash purchase, no loan)
Full breakdown — where the rent goes
| Line | Amount / year |
|---|---|
| Gross rent | £15,600 |
| − Vacancy (2 wk) | −£600 |
| − Management fee | −£1,560 |
| − Maintenance | −£2,800 |
| − Insurance | −£250 |
| − Other costs | −£900 |
| = Net rental income | £9,490 |
Property value £280,000 + acquisition costs £8,000 = total property cost £288,000. Gross yield divides by property value alone; the total-cost net yield divides by the full amount you actually put into the purchase.
Gross yield = annual rent ÷ property value × 100. Net yield shown two ways — divided by property value alone, and divided by the total amount invested (value + acquisition costs) — because sources use both conventions. Vacancy, management fee, maintenance and other costs are editable estimates, not fixed rules. Sources: Landlord Vision, Savills, Westpac, Property Investment Professionals (see page for citations). How we calculate →
Gross yield vs net yield: the two numbers that matter
Gross rental yield is your annual rent divided by the property's value, multiplied by 100 — the quick number both Landlord Vision and Savills use to compare properties at a glance. It ignores every running cost, so it always looks better than reality.
Net rental yield deducts vacancy, letting agent fees, maintenance, insurance and other running costs first. Because there are two ways to define the denominator — the property's value alone (the Landlord Vision/Savills convention), or the full amount you actually invested including stamp duty and legal fees — this calculator shows both net figures rather than picking one silently.
Worked example: a typical UK buy-to-let
Take a £280,000 property let at £1,300 a month (£15,600 a year), with 2 weeks' vacancy, a 10% letting agency fee, 1% of value for maintenance, £250 insurance and £900 for council tax, ground rent and service charges — the calculator's own defaults, all editable above.
That gives a gross yield of 5.57%, a net yield on value of 3.39%, and a net yield on total cost (including £8,000 of stamp duty and legal fees) of 3.30% — a full 2.27-point gap between the headline number and the realistic one, which is exactly why Landlord Vision and Savills both warn against comparing gross yields alone.
What is a good rental yield in the UK?
There's no official benchmark. Savills says explicitly that a good rental yield 'will be based on what you're looking at buying, and your own financial goals'; Landlord Vision doesn't quote a figure either. As a general market observation (used elsewhere on Calcuris in our buy-to-let mortgage calculator), gross yields of around 5-8% are typical across much of the UK, with higher yields in northern England and lower yields in London and the South East, where prices are higher relative to rent.
Treat any single number as a starting point, not a rule — compare the yield this calculator gives you against similar properties in the same postcode, not a national average.
How leverage changes your return: cash-on-cash
Yield measures return against the whole property value, but most landlords only put in a deposit plus stamp duty and fees. Cash-on-cash return divides your net rental income, minus mortgage interest, by the cash you actually invested — it can be dramatically different from the yield.
For example, a £200,000 property let at £950/month with a 25% deposit (£150,000 mortgage at 6.5% interest) has a healthy 5.70% gross yield, but once £9,750 of annual mortgage interest is deducted, the cash-on-cash return falls to -5.85% — the property is running at a cash loss even though the yield looks fine. Enter your own deposit percentage and rate above to see this for your numbers.
Acquisition costs landlords often leave out
Because buy-to-let and second homes pay a 5% stamp duty surcharge on top of standard rates, acquisition costs on a UK rental purchase are rarely trivial — often £6,000-£10,000+ even on a modest property once stamp duty, legal fees, survey and valuation fees are added. Leaving these out of your net yield calculation, as a pure 'value-only' net yield does, overstates your real return.
This is why the calculator shows a second net yield figure that divides by property value plus acquisition costs — closer to what Property Investment Professionals-style tools call a 'total cost' yield, adapted here to UK stamp duty.
Vacancy, management fees and the running-cost gap
Even a well-let property is rarely occupied 100% of the time — this calculator defaults to 2 weeks' vacancy a year, editable if your area or tenant turnover differs. Letting agency management fees (commonly 10-15% of rent in the UK) and maintenance (budgeted here at roughly 1% of property value a year) are usually the two largest deductions between gross and net yield, ahead of insurance and council tax/ground rent.
The full breakdown table above shows exactly where each pound of rent goes, so you can see which cost is driving the gap for your property rather than trusting a single blended 'expenses' figure.
Frequently asked questions
What is rental yield?
Rental yield is the annual return a property generates from rent, shown as a percentage of its value. Gross yield = annual rent ÷ property value × 100. Net yield deducts vacancy, management fees, maintenance, insurance and other running costs first, giving a more realistic figure.
How do I calculate rental yield?
Divide your annual rent by the property's purchase price or current value, then multiply by 100 for gross yield. For net yield, subtract vacancy loss and annual running costs from the rent before dividing. This calculator does both instantly and shows the full line-by-line breakdown.
What is a good rental yield in the UK?
There's no official figure — Savills and Landlord Vision both decline to give one, saying it depends on your goals. As a general observation, gross yields of 5-8% are typical across much of the UK, with higher yields in the North and lower yields in London and the South East.
What is the difference between gross and net rental yield?
Gross yield ignores running costs and only compares rent to property value — useful for a quick scan but overstates your real return. Net yield deducts vacancy, agency fees, maintenance, insurance and other costs, and can be measured against the property value alone or against your total investment including stamp duty and fees; this calculator shows both.
Should I include stamp duty in my rental yield calculation?
For a realistic picture, yes. Buy-to-let purchases pay a 5% stamp duty surcharge on top of standard rates, which can add several thousand pounds to your acquisition cost. This calculator's 'net yield on total cost' figure includes acquisition costs in the denominator so this is not hidden.
How does a mortgage affect my rental yield?
Rental yield itself (gross or net) doesn't factor in mortgage interest — it measures the property's own return. Cash-on-cash return does: it deducts mortgage interest from net income and divides by the cash you actually invested (deposit plus fees), which can turn a decent yield into a cash loss if you're highly leveraged at a high interest rate.
How much vacancy should I budget for?
Two weeks a year is a common starting assumption for a well-managed single let in the UK, though student lets, HMOs and weaker rental markets can see considerably more. Adjust the vacancy field above to match your area and property type — it directly reduces both net yield figures.
Related calculators
- Buy-to-Let Mortgage Calculator — borrowing, ICR stress test and monthly cashflow.
- Stamp Duty Calculator — SDLT, LBTT and LTT with the buy-to-let surcharge.
Researched & verified by the Calcuris Data & Research Team. How we build and check our tools →