Rental Yield Calculator (UK)

Yield is how UK landlords price a deal: annual rent against what the property costs. Enter the purchase price, monthly rent and annual running costs below to get both the gross yield and the more honest net yield.

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Gross vs net yield

Gross yield = (Monthly rent × 12) ÷ Price × 100% | Net yield = (Annual rent − annual costs) ÷ Price × 100%

Gross yield ignores running costs — useful for a quick screen, but it flatters every property. Net yield subtracts letting agent fees, maintenance, insurance, service charge and ground rent, and is the number that actually reaches your pocket (before mortgage payments).

UK benchmarks (2026): gross yields of 5–8% are typical across much of England; northern cities and the North East often clear 7–9% while London frequently sits at 3–5%. BTL lenders typically stress-test at 125–145% of interest at notional 5–6% rates.

Frequently asked questions

What is a good rental yield in the UK?

Gross 5–8% is healthy for most of England; above 8% usually means the North, HMOs, or higher risk. London landlords often accept 3–5% betting on capital growth.

Does net yield include the mortgage?

No — like cap rate, net yield is computed before financing. For the levered number, use cash-on-cash return with your actual mortgage payments.

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Sources & notes

Last updated: 2026-09-08