Rental Yield Calculator (UK, Gross + Net)
Punch in rent, price and the real running costs. Get gross and net yield in pounds and percentages — the number that actually matters for buy-to-let.
Running costs (optional, annual)
Gross yield: 0.00%
Net yield: 0.00%
Yield is one measure of rental return — it ignores capital growth, mortgage interest and tax. Use alongside a proper cash-flow projection.
Gross vs net — and why both matter
Gross yield is annual rent ÷ property value. It's the number on every agent particulars sheet. It ignores costs, which makes it useless for comparing a low-cost freehold house against a leasehold flat with £3,000 a year of service charge.
Net yield subtracts the real cost of holding and running the property: voids, management, maintenance, insurance, service charge, landlord licensing. On flats with material service charge, the gap between gross and net can be three percentage points.
Rule-of-thumb costs
- Fully-managed letting agent: 10–12% of rent
- Maintenance: 1% of property value per year (higher for older stock)
- Landlord insurance (buildings + rent guarantee): £250–£500 per year
- Voids: 2 weeks is conservative-realistic, 4 is plausible at turnover
- Leasehold flats: add £1,500–£3,500+ for service charge and ground rent
What the calculator doesn't show
Mortgage interest, income tax, capital growth. Those need a separate cash-flow model — yield is a starting filter, not a full investment decision. A 7% gross yield in a stagnant area can still underperform a 4% yield in a rising one after 10 years.
Where Offrly fits
Yield calculations are only as honest as the rent number you feed in. Offrly gives you that number, fast: our AI reads each comparable rental's photos — finish, garden, layout — the way a veteran letting agent would, and a hyperlocal regression resolves rents to the street rather than the postcode. Thirty seconds, free, no email. It's a sharp first-pass rent estimate.
Run a free Offrly rental valuation →
Disclaimer: This calculator and any Offrly estimate are market guidance, not regulated valuations, financial advice or investment advice. Rental yield ignores mortgage interest, tax and capital movement. Before making a buy-to-let decision, consult a qualified letting agent, mortgage broker and — for tax structure — an independent tax adviser.
Don't guess the rent — read the market
Offrly's AI reads each comparable rental — photos, finish, garden, layout — the way an experienced letting agent would, and a hyperlocal regression resolves rents to the street rather than the postcode. About 30 seconds, no agent pitch, no signup.
Value my rental free →FAQ: Rental Yield Calculator (UK, Gross + Net)
What's a good rental yield in the UK?
Regional averages vary a lot — London flats often sit at 3–4% gross, while parts of the North East and North West can top 7%. Net yield matters more than gross; anything above 4% net is respectable for a leveraged buy-to-let.
Should I use purchase price or current value?
Use all-in purchase cost (including stamp duty, legals and refurb) for a true yield. Current value is useful when comparing a rental you already own against a cash alternative.
Is yield the same as return?
No. Yield measures income only. Total return includes capital growth plus income minus mortgage interest and tax. Yield-only comparisons flatter high-yield, slow-growth areas and underplay high-growth prime areas.
What about mortgage interest?
Net yield here is pre-finance, pre-tax. To see cash-on-cash return on your deposit, subtract monthly mortgage interest from net income and divide by the deposit.
Why subtract voids?
Because no property is let 52 weeks a year forever. Two void weeks is conservative-realistic; four is plausible at turnover. Ignoring voids is how landlords mis-forecast cash flow.