Rental Yield Calculator UK

How to use this rental yield calculator

Enter the property price, the monthly rent and your expected annual running costs. If you are buying with a mortgage, add your deposit and buying costs. The calculator returns gross yield, net yield and cash-on-cash return together, and lets you adjust each input to compare scenarios side by side. Use it to screen a property before you commit, then track the property's real performance in August so your actual figures stay close to the plan.

What the calculator works out

The tool reports three figures. Gross yield is annual rent as a percentage of the property price, a quick screen for comparing listings. Net yield deducts running costs first, which gives the truer picture of what a property earns. Cash-on-cash return measures pre-tax cash flow against the cash you have actually invested, the most useful figure when you are using a mortgage. For the full definitions, a worked example and what counts as a good yield, see our guide to how rental yield is calculated and compared. For commercial property, the calculator also supports net initial yield, the net income measure agents and surveyors use against open market value.

The rental yield formula

Gross yield: (annual rent ÷ property value) × 100

Net yield: ((annual rent − annual costs) ÷ property value) × 100

Cash-on-cash return: (annual pre-tax cash flow ÷ total cash invested) × 100

The calculator applies all three automatically, so you can test different rents, costs and rates without working through the maths by hand.

What costs to enter for an accurate net yield

For a realistic net yield, include the costs that actually fall on the property: management or letting fees, buildings and landlord insurance, service charge and ground rent on leasehold flats, compliance such as gas safety and electrical checks, routine maintenance, and a voids allowance of around 5 to 8% of annual rent. Many landlords also add a reserve for major items such as boilers and roofs. If you are weighing an agent-managed let against self-managing, our letting agent fees calculator breaks those costs down by type.

Stress-test before you commit

Strong returns depend on realistic inputs. From working with self-managing landlords, we see the same assumptions prove optimistic: the rent achieved, the void rate and the cost of finance. Use the calculator to model a higher voids allowance, add a maintenance contingency, and, if you are using a mortgage, check the figures at today's interest rate and one to two percentage points above it. Saving a base case, a downside case and a best case shows how much room a property really has.

Frequently asked questions

Does the calculator account for tax? 

It works on pre-tax figures. Individual landlords now receive a basic-rate tax credit on mortgage interest rather than a deduction, so your after-tax return will be lower than the cash-on-cash figure shown. See how rental income is taxed for the detail.

Should I compare properties on gross or net yield? 

Use gross yield to screen quickly, then net yield to decide. Two properties can share a gross yield while one delivers a far weaker net yield once service charges, voids and maintenance are applied.

Other reading

A strong yield is the foundation of a profitable buy-to-let, but the numbers need context. Our guide to the best places to buy UK rental property in 2026 shows where yields are holding up across different regions, and our article on buy-to-let houses vs flats compares how property type affects yield, maintenance costs and long-term returns.

Disclaimer

Figures are estimates only for informational purposes and do not account for all potential costs. Check your numbers with a qualified professional before making investment decisions.

For more information read our What is Rental Yield? A Landlord's guide.