Estimate gross and net rental yield after vacancy and annual property running costs.
This is a property-level estimate before mortgage finance costs and tax. Actual rent, vacancy and expenses can vary.
How to use the Rental Yield Calculator UK
Enter the property price or value, expected monthly rent, annual running costs and vacant weeks. The calculator shows potential rent, vacancy-adjusted rent, net rental income, gross yield and net yield.
Rental yield formulas
| Result | Formula |
|---|---|
| Gross annual rent | Monthly rent × 12 |
| Adjusted rent | Gross rent × occupied weeks ÷ 52 |
| Gross yield | Gross annual rent ÷ property value × 100 |
| Net yield | (Adjusted rent − annual costs) ÷ property value × 100 |
Gross yield versus net yield
Gross rental yield ignores vacancy and expenses, so it is useful for a quick property comparison. Net rental yield deducts the vacancy allowance and entered operating costs. It usually gives a more realistic view of the income generated by the property.
Costs to include
Common costs include letting-agent fees, landlord insurance, repairs, safety checks, service charges and periods between tenants. GOV.UK explains that qualifying expenses must be wholly and exclusively for renting the property when calculating taxable rental profit. Check the official rental income guidance for tax rules.
Mortgage and tax treatment
This calculator does not deduct mortgage payments or Income Tax. Capital repayments build equity and are not the same as an operating expense. Finance-cost tax treatment differs by ownership structure and circumstances, so use the yield as a screening estimate rather than a tax return calculation.
Related calculators
Compare a new loan deal with the Remortgage Calculator UK. Estimate transaction costs with the Conveyancing Fees Calculator UK. Browse all available tools on the United Kingdom Calculator homepage.
Frequently asked questions
What is rental yield?
Rental yield is the annual rental income expressed as a percentage of the property’s price or value.
What is a good rental yield in the UK?
There is no universal target. Expected yields vary by location, property type, finance costs, risk and maintenance needs.
Should I use purchase price or current value?
Use purchase price to assess the original investment or current value to compare today’s return with other opportunities.
Does net rental yield include mortgage payments?
No. This calculator deducts entered operating costs and vacancy but excludes mortgage finance and tax.
Why include vacant weeks?
Vacancy reduces the rent actually collected. Including an allowance avoids assuming perfect occupancy every year.