Rental Yield Calculator
Calculate both gross and net rental yield on a buy-to-let property. Gross yield ignores running costs; net yield accounts for them. Most landlords target a net yield of 5-7% to cover voids, maintenance, and mortgage risk.
Buildings and landlord insurance
Annual maintenance and repairs budget
Gas safety, EICR, and EPC certificate renewals
Void period allowance (1-2 months per year is prudent)
Accountancy fees if applicable
Gross yield, net yield, and which one to trust
Gross yield is annual rent divided by property value, and it is the number listings quote because it is always the bigger one. Net yield subtracts your real running costs from the rent before dividing, and it is the number that decides whether the property actually pays. Two properties with identical gross yields can sit percentage points apart on net yield once management fees, maintenance, and voids are counted honestly.
Costing voids honestly
An empty month costs more than a month of rent: council tax and utilities usually transfer to you while the property sits empty, and compliance renewals do not pause. Budgeting one to two void months per year keeps the net figure honest; assuming zero voids is the most common way a projected yield flatters reality.
Yield after tax
This calculator works pre-tax. Mortgage interest treatment under Section 24 and your income tax band change what you keep, and our Section 24 calculatorshows that effect. Tracking actual expenses through the year in the categories HMRC’s property pages use makes the January return an export, not an archaeology project.
Frequently asked questions
What is the difference between gross and net rental yield?+
Gross yield is annual rent divided by the property value. Net yield deducts your real running costs from the rent first, which includes management fees, insurance, maintenance, compliance certificates, and an allowance for void periods, then divides by the value. Net yield is the figure that reflects what you actually keep.
What is a good rental yield in the UK?+
It depends on the area, the property type, and your cost base, so a single benchmark figure would mislead. The more useful comparison is your own gross yield against your net yield: a high gross yield with heavy maintenance and voids can underperform a modest gross yield on a well-kept property.
Which costs should I include when working out net yield?+
Letting agent or management fees, buildings and landlord insurance, an annual repairs and maintenance budget, compliance costs such as gas safety, EICR and EPC renewals, ground rent and service charges where they apply, and a realistic allowance for void periods between tenancies.
This calculator does not account for mortgage interest, stamp duty, income tax, or capital gains tax. Net yield is calculated before tax. Always consult a qualified financial adviser before making investment decisions.
STEMHQ tracks actual rent collected, arrears, and running costs across your whole portfolio, so you see true yield as it happens, not just at purchase.
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