Rental Yield Calculator
Work out the gross and net rental yield of any investment property. Add a mortgage to see your monthly cash flow and cash-on-cash return, so you know if the rent really justifies the price.
Verdict
Good yield
A net yield of 4–6% is healthy for most residential markets, leaving room for costs and growth.
Gross yield
5.76%
rent ÷ price
Net yield
4.17%
after costs
Property details
Enter the price, rent, and running costs.
Property & purchase
Stamp duty, legal fees, survey, and other one-off buying costs.
Rental income
Share of the year the property sits empty between tenants.
Monthly running costs
Mortgage (optional)
Tick the box above to model a buy-to-let mortgage and see your monthly cash flow and cash-on-cash return.
About the Rental Yield Calculator
The Rental Yield Calculator tells you how hard an investment property works for its price. It calculates both the gross yield (annual rent divided by the purchase price) and the net yield (income after running costs divided by the total amount invested), the two figures every landlord and buy-to-let investor uses to compare properties.
Beyond yield, the calculator builds a full annual picture: it deducts a vacancy allowance and your monthly running costs to show net operating income, then — if you add a mortgage — your monthly cash flow and cash-on-cash return. That makes it easy to see whether a property merely looks good on paper or genuinely puts money in your pocket each month.
It supports multiple currencies and both repayment and interest-only mortgages, so it works equally well for buy-to-let in the UK, rental property in the US, or apartments across the Eurozone, Canada, and Australia. Results update instantly as you change any figure.
How to Use the Rental Yield Calculator
1. Enter the property price
Type the purchase price and one-off buying costs such as stamp duty, legal fees, and the survey. Together these form your total investment.
2. Add the rent
Enter the rent and choose weekly, monthly, or annual. Set a realistic vacancy rate to allow for the weeks between tenants.
3. List running costs
Fill in monthly management, maintenance, insurance, tax, and service charges. These turn the gross yield into a realistic net yield.
4. Add a mortgage (optional)
Tick the mortgage box to enter your deposit, rate, and term. The calculator then shows monthly cash flow and cash-on-cash return.
Common use cases
Comparing properties
Run two or three listings through the calculator to see which offers the best net yield for your money.
Buy-to-let planning
Model a mortgage to check whether the rent comfortably covers the repayments and still leaves positive cash flow.
Setting the rent
Work backwards from a target yield to see what rent a property needs to achieve to make financial sense.
Reviewing your portfolio
Re-check the yield on a property you already own as rents, rates, and costs change over time.
Stress-testing rates
Raise the mortgage interest rate to see how higher borrowing costs affect your cash flow before you commit.
Holiday & short lets
Use a higher vacancy rate and management cost to reflect the running profile of a short-let property.
Rental Yield Calculator FAQ
What is rental yield?
Rental yield measures the annual rental income a property generates as a percentage of its value or cost. It is the headline number landlords and investors use to compare properties and judge whether the rent justifies the price. A higher yield means more income per pound, dollar, or euro invested.
What is the difference between gross and net yield?
Gross yield is annual rent divided by the property price, ignoring costs — quick but optimistic. Net yield subtracts running costs (management, maintenance, insurance, tax, voids) from the rent and divides by the total amount invested, including purchase costs. Net yield is the realistic figure; gross yield is only useful for fast comparisons.
What is a good rental yield?
It varies by market, but as a rough guide: a net yield above 6% is excellent, 4–6% is good, 2.5–4% is moderate, and below 2.5% is low. High-yield areas often have lower capital growth, while expensive city-centre property may yield 2–3% but appreciate faster. Always weigh yield against expected price growth and risk.
What is cash-on-cash return?
When you buy with a mortgage, cash-on-cash return measures the annual cash flow (rent minus all costs and mortgage payments) against the actual cash you put in — your deposit plus purchase costs. Because leverage means you invest far less of your own money, cash-on-cash return is often much higher than the net yield, but it also carries more risk.
What costs should I include in the expenses?
Include letting or management fees, maintenance and repairs, landlord insurance, any property or council tax you pay, service charges or ground rent for leasehold flats, and a buffer for other costs such as accounting, licensing, or safety certificates. Setting aside roughly 1% of the property value per year for maintenance is a common rule of thumb.
Why does vacancy rate matter?
No rental stays occupied 100% of the time. A vacancy rate accounts for the weeks between tenants and any non-paying periods. Even one void month a year is about an 8% vacancy rate, which noticeably reduces your effective income. Entering a realistic figure (often 4–8%) keeps the net yield honest.
Does rental yield include capital growth?
No. Yield only measures rental income. The total return on a property is the yield plus any increase in the property value over time. A low-yield property in a fast-growing area can still outperform a high-yield property in a stagnant one, so always consider both income and growth before investing.
Pro Tips
- • Use net yield, not gross yield, to compare real returns — gross yield ignores every running cost.
- • Budget around 1% of the property value each year for maintenance and unexpected repairs.
- • Factor in at least one void month per year (about 8% vacancy) when income matters to your budget.
- • With a mortgage, watch cash-on-cash return and monthly cash flow, not just yield — leverage cuts both ways.