Yield calculator
Want to know how profitable a rental property could be? Our Rental Yield Calculator helps you quickly estimate the gross yield—a key figure that shows the return on your investment as a percentage of the property’s value.
Simply enter the property price and expected monthly rent, and let us do the maths. It’s a useful tool for comparing potential investments or assessing the performance of your existing portfolio.
Please note: This tool provides a gross yield calculation and does not factor in costs like maintenance, void periods, or management fees.
Calculate rental yield
What is rental yield
Rental yield is a key metric used by landlords and property investors to measure the return on a rental property. It’s calculated as a percentage by comparing the annual rental income to the property’s purchase price.
There are two main types:
Gross Yield – based only on rental income vs. purchase price
Net Yield – factors in expenses like maintenance, letting fees, and void periods
A higher yield typically means a better return, but it’s important to balance this with tenant demand, property condition, and long-term capital growth.
How do you calculate rental yield?
Rental yield is calculated by dividing your annual rental income by the property’s purchase price, then multiplying the result by 100 to get a percentage.
Gross Rental Yield Formula:
(Monthly Rent × 12) ÷ Property Price × 100 = Gross Yield (%)
For example, if you charge £1,000 per month and the property cost £200,000:
(£1,000 × 12) ÷ £200,000 × 100 = 6% gross yield
This quick calculation helps you assess how well a property could perform as an investment.
For a more accurate picture, consider factoring in costs like maintenance, insurance, and void periods to estimate net yield.
Use our Rental Yield Calculator to make it easy!
Why is rentail yield so important?
Rental yield is one of the most important metrics for landlords and property investors because it shows how much income a property generates compared to its value. A strong yield means better cash flow and a potentially more profitable investment.
It helps you:
Compare investment opportunities
Measure ongoing performance
Assess risk vs. return
Plan your finances and growth strategy
Whether you’re buying your first buy-to-let or expanding a portfolio, understanding rental yield helps you make smarter, more informed decisions that align with your investment goals.
How do I know what good rental yield is?
A “good” rental yield can vary depending on location, property type, and your investment goals. However, as a general guide:
Below 4%: Low return, may not be the best investment for cash flow, though the property could see strong long-term capital appreciation.
4% – 6%: A solid return, typical for many areas, balancing yield with potential for property value growth.
6% or above: High return, often seen in areas with higher rental demand or in more affordable regions, but may come with higher risk or more management demands.
What’s considered “good” for you will depend on your investment strategy—whether you prioritize steady cash flow, capital appreciation, or a balanced approach.