This calculator gives you a quick and simple way to estimate the return you can make from renting out a property, shown as a percentage of its value. You can enter different figures and compare various scenarios to help you make more informed investment decisions.
Calculate the gross and net rental yields on a rented property.
Please note, the yields generated by our calculator should be viewed as indicative and the actual rental yield achieved may vary.
Using the calculator is quick and simple. You just need to enter three key pieces of information:
Enter the purchase price of the property. This is the amount you paid, or would pay to buy it.
Add the expected monthly rental income. This should be the total rent you receive from tenants each month.
Include all yearly costs, such as insurance, maintenance, letting agent fees and any other regular outgoings (see below for a more comprehensive list of possible expenses). The calculator will divide these across the year to work out your monthly impact.
Once you’ve entered these details, the calculator will show you your rental yield, monthly cashflow and potential return on your property.
Your annual expenses field on the rental yield calculator can cover a wide range of real-world landlord costs. Here are some of the most common ones to include:
Mortgage payments
If you have a buy-to-let mortgage, your payments are likely to be one of your biggest ongoing costs. Include the total amount you pay each year to see how financing affects your property’s cashflow. But do consider your mortgage type:
Interest-only mortgage: You pay only the interest each month, so your monthly costs are lower and cashflow is higher, which can improve short-term net yield. However, the capital still needs to be repaid at the end of the term, so your overall profit or ROI could be lower if you haven’t saved or planned for this repayment.
Repayment mortgage: Your monthly payments cover both interest and capital, meaning cashflow is lower, but you gradually build equity in the property. Over time, this increases your overall profit when you sell.
Including your mortgage payments gives a realistic view of both monthly earnings and long-term profitability.
Letting agent fees
If you use a fully managed service, the fee is usually taken as a percentage of your rent. Many landlords pay somewhere around 10 to 15% of their monthly rent for this.
Insurance
Landlord insurance is essential, and most people set aside a few hundred pounds a year depending on the property and level of cover.
Maintenance and repairs
Every property needs ongoing care. A common rule of thumb is to budget around 1% of the property’s value each year to cover everything from small fixes to the occasional bigger job.
Void periods
Most rentals are not occupied every single day of the year. Allowing for a short gap between tenants is sensible, and many landlords budget the equivalent of one month’s rent as a buffer.
Compliance and safety
Legal requirements such as annual gas safety checks and other safety assessments come with a cost, so it is worth setting aside an appropriate annual amount for them.
Other costs
Depending on the property, you may also need to factor in service charges, ground rent, accountancy fees or other admin costs. These can vary widely, so include a realistic estimate.
Just enter property price, monthly rent and annual expenses. The calculator does the rest. You will see four key results:
The amount you earn or lose each month after your annual expenses have been spread out across the year.
This is the quick headline number. It looks at how much rent you bring in over a year compared with what the property is worth. It is a simple way to size up different properties when you are shortlisting or comparing areas.
This is the one that reflects real life. It takes your annual rent and then knocks off the costs that come with being a landlord, such as maintenance, insurance, service charges or agent fees. Once those are out of the way, you can see what you are actually earning.
How long it would take for your net annual rental income to repay the full property price.
This calculator is designed for anyone who wants a clear view of their rental return, including:
First-time landlords: People who want a simple way to check whether a potential investment stacks up.
Accidental landlords: Homeowners who did not plan to rent out a property but now find themselves doing so because of life changes. This could be due to moving in with a partner, relocating for work, inheriting a property, or struggling to sell in a slow market. If you have become a landlord unexpectedly, understanding rental yield can help you decide whether renting is the right long-term option or whether selling might make more sense.
Portfolio landlords: Investors who want a quick way to compare performance across multiple properties.
Investors comparing regions: People exploring different parts of the UK and wanting a fair, like-for-like comparison.
Homeowners deciding whether to sell or rent: A clear yield calculation can help you weigh up both options.
People checking whether their current property still performs well: Useful if your costs have risen or your mortgage deal has changed.
Here’s a simple example using the same three inputs that our rental yield calculator asks for. This demonstrates how the calculator works behind the scenes.
Example inputs:
Property price: £200,000
Monthly rent: £1,000
Annual expenses: £3,000
Annual rent: £1,000 × 12 = £12,000
Gross yield: £12,000 ÷ £200,000 × 100 = 6%
Net yield: (£12,000 minus £3,000) ÷ £200,000 × 100 = 4.5%
Cashflow: (£12,000 minus £3,000) ÷ 12 = £750 per month
Payback period: £200,000 ÷ £9,000 = 22.2 years
There is no single ‘right’ number for a good rental yield, but UK landlords often aim for:
5-8% for a healthy, sustainable yield.
7% or more is common in higher-yield areas and for HMOs, which often generate stronger returns because of their multi‑tenant setup.
4% and under is below average.
The average gross rental yield in the UK currently sits at around 5.8%. This is based on Zoopla figures, which combine an average buy-to-let property price of £270,045 with the UK’s average monthly rent of £1,301.
Remember, yield is not everything, but it is a great starting point.
Other things important to look at
This is not a guide to tax, can be complex, get help, but some issues to think abear in mind… is not tax advice, but it is useful to know what affects your rental profit.
You pay income tax on rental profits.
Many running costs are allowable expenses.
Mortgage interest relief is now a 20% tax credit.
You may pay capital gains tax if you sell at a profit.
These factors affect your real return, which is why net yield matters.
Rental yield helps you understand whether a property is a solid investment or a drain on your finances.
And with the UK rental market shifting fast, it’s important to keep an eye on your numbers.
A few recent insights:
Rents are still rising – just not as sharply as before: Rents are still climbing, but the pace has eased: According to the Office for National Statistics (ONS), in the year to January 2026, average UK private rents rose by around 3.5 %, with the typical monthly rent now about £1,367. That’s slower than the double-digit increases seen in parts of 2024, but it still means landlords are seeing income grow year-on-year.
Rents are rising faster than house prices in many areas: ONS data also shows that house prices rose more slowly – by 2.4% over a similar period. When rents grow faster than property values, it can help boost rental yields for landlords.
Private renting remains a big part of the housing market: According to the English Housing Survey, around one in five (19%) households in England rent privately. That’s a sizeable tenant pool, and it shows demand for rental homes isn’t going anywhere anytime soon.
The latest figures paint a really interesting picture of how rental yields vary across the country. Some regions offer noticeably stronger returns than others, mainly because of the balance between local rents and property prices.
Here is how the numbers stack up according to Zoopla:
North East: around 7.9%.
Scotland: around 7.6%.
North West: around 6.8%.
Wales: around 6.5%.
Yorkshire and the Humber: around 6.5%.
These regions come out on top, helped by lower property prices and steady rental demand.
But at the lower end of the scale:
London: around 5.1%.
East of England: around 5.6%.
South East: around 5.6%.
High property prices in these regions mean yields tend to be slimmer, even with strong rental demand.
Yields can look very different depending on where you buy, which is why comparing regions can be so helpful when you are weighing up an investment.
Improving your rental yield takes time, patience and research. Choosing the right area is just as important as managing the property itself. Before investing – or if you’re reviewing your current property – look closely at the local rental market, employment opportunities and planned infrastructure, as these can all influence demand and achievable rent.
Once you’ve chosen the right location, getting the best from your property is key. A well-presented, well-designed and energy-efficient home is more attractive to tenants and can help you command a higher rent while reducing costly void periods. Building a positive, honest relationship with tenants can also improve retention, cutting down on turnover and additional letting fees.
A few practical tweaks can make a noticeable difference:
Refresh kitchens or bathrooms: Modern, clean spaces can justify higher rent.
Reduce void periods: Improve your marketing with high-quality photos and competitive pricing.
Review your letting agent fees: Make sure you’re getting value for money.
Allow pets: Pet-friendly properties often see stronger demand and can achieve higher rents.
Improve energy efficiency: Better insulation and efficient heating systems appeal to tenants and reduce running costs.
Consider your management model: Switching between fully managed and self-managed options could help reduce agency fees.
Rental yield is great for quick comparisons, but it only shows how your rent relates to the property price. Return on investment (ROI) goes deeper and looks at your actual return once every cost is taken into account.
Here’s a clearer breakdown:
What it shows | What it includes | Why it matters | |
|---|---|---|---|
Gross yield | Annual rent as a percentage of the property price | Monthly rent × 12 | A fast way to compare properties at a glance. |
Net yield | Annual rent minus annual expenses, shown as a percentage of the property price | Maintenance, insurance, agent fees, voids, mortgage interest if added | Gives a more realistic view of day-to-day performance. |
ROI (return on investment) | Profit compared with everything you have put into the property | Deposit, stamp duty, legal fees, renovations, mortgage interest, ongoing costs | Shows your true return once all upfront and ongoing costs are considered. |
Why ROI matters
ROI helps you understand whether the investment is genuinely paying off. It is especially useful if you have:
Put down a large deposit.
Paid stamp duty or legal fees.
Renovated the property.
Taken out a mortgage.
Several properties you want to compare fairly.
You can calculate your return on investment (ROI) in four simple steps:
Include your deposit, stamp duty, legal fees, survey costs, and any renovation or furnishing expenses.
Take your yearly rental income and subtract your ongoing costs, such as mortgage payments, maintenance, insurance and letting agency fees.
This shows how much return you are making for every pound invested.
This gives you your ROI as a percentage.
Example:
If you have £7,200 net income and you invested £60,000 upfront, your ROI would be:
£7,200 ÷ £60,000 × 100 = 12 percent.
Page updated on 23rd March 2026, Reviewed by Richard Groom