Rental Yield Calculator

How to Calculate Rental Yield (UK)

Calculating rental yield is simple and important. It assists in comprehending the actual yield from a buy-to-let property investment.

Quick formula

• Gross yield % = (Annual rent ÷ Property value) × 100
• Net yield % = ((Annual rent − Annual costs) ÷ Property value) × 100

Step-by-step

• Pick your value basis: use either the purchase price (incl. buying costs) or the current market value.
• Annualize the rent: monthly rent × 12.
• Enumerate annual costs (for net earnings): agent fees, maintenance/repairs, insurance, service charges, land rental, regulatory inspections, vacancy reserve, and mortgage interest (if applicable).
• Calculate: apply the formulas above to get your gross and net yield percentages.

Note: Don’t include regular expenses in your annual rent figure—deduct them as costs. Otherwise, your yield will be exaggerated.

Calculating Yield for a Property You Don’t Own Yet

If the property isn’t let—or you’re still assessing a purchase—use sensible estimates for rent and costs. Remember: the yield is only as accurate as the numbers you enter.

• Base rent on comparable local listings and recent lets.
• Add a realistic voids buffer (e.g., a few weeks per year).
• Run a quick sensitivity check (±10% rent or costs) to see the best- and worst-case yields.

The Easiest Way to Calculate Rental Yield

Sure—you could ask an accountant. But for most UK landlords, the fastest, most cost-effective route is to use a smart calculator and let the math run itself.

Start with our free UK rental yield calculator to get instant gross and net yields in GBP. To keep your numbers accurate, use property management software. This software tracks rent, expenses, and voids automatically. This way, your figures stay up-to-date all year.

Why this is easier

1. Instant results: enter price/value, rent and costs—see yield in seconds.
2. Always current: update rent or expenses anytime; yields refresh automatically.
3. Tax-time ready: tidy income/expense records make Self Assessment less stressful.
4. Portfolio view: compare returns across multiple buy-to-lets at a glance.

Calculate today, keep it accurate all year, and arrive at tax season prepared—not panicked.

An Easier Way to Track All Your Property Finances

Connect your bank, reconcile rent and expenses, and stay tax-ready—all in one secure, UK-focused platform.

1. Live bank feeds and easy reconciliation: securely import transactions using Open Banking. Match payments to rent and bills with just one click.
2. Ready for Making Tax Digital (MTD): prepare and submit digital tax returns with built-in tools for UK landlords.

All-in-one accounting: track income and expenditure, create invoices, and monitor cash flow—no separate accounting subscription required.