Calculate∑ What your result means
Rental yield measures the annual rental income as a percentage of the property's price, giving a quick way to compare the income return of different buy-to-let properties.
Buy-to-Let Rental Yield Calculator
Work out the gross and net rental yield on a buy-to-let property.
Your details
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£/mo
£/yr
£
%
weeks
%
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Verified for 2026-27Methodology 2026-27.1 · reviewed 2026-08-08 · review by 2027-03-01
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Compare scenarios
Change monthly rent to see the effect on your result.
Understand your result
Clear context for the values above.
Property price
Property price is included so you can interpret this estimate and make a better-informed comparison.
Monthly rent
Monthly rent is included so you can interpret this estimate and make a better-informed comparison.
Annual running costs
Annual running costs is included so you can interpret this estimate and make a better-informed comparison.
Buy-to-let mortgage balance
Buy-to-let mortgage balance is included so you can interpret this estimate and make a better-informed comparison.
How to use this calculator
- 1Enter your current property price, monthly rent, annual running costs, buy-to-let mortgage balance, mortgage interest rate, expected vacant weeks per year, landlord marginal income-tax rate.
- 2Review the headline net rental yield and the supporting figures beside it.
- 3Change one input at a time to see which assumption has the biggest effect.
- 4Confirm current UK rates and thresholds with an official source before acting.
Explore this calculator
What your result means →The headline net rental yield is based on the inputs currently shown above.Key terms explained →Review the assumptions, applicable rules, timing and real-world fees before making a decision.How to use this calculator →Enter your figures, review the live result, compare scenarios, then save or print your estimate.The calculation formula →The calculation follows the standard relationship between the displayed inputs. Results update whenever an input changes.Worked example →Using the current values produces 0.51%.Assumptions and limitations →Review the assumptions, applicable rules, timing and real-world fees before making a decision.Costs or factors not included →Review the assumptions, applicable rules, timing and real-world fees before making a decision.Frequently asked questions →How accurate is this estimate? What should I check before relying on it? Can I save or share the result?
▦ How this calculator works
Gross yield is annual rent divided by property price. Net yield subtracts your annual running costs (letting agent fees, maintenance, insurance, service charges) from the annual rent before dividing by price, giving a more realistic picture.
◇ Assumptions and what's not included
Entered void weeks, mortgage interest, running costs and the Section 24 basic-rate credit are included. Capital repayments, acquisition finance fees and Capital Gains Tax on eventual sale remain outside this annual cash-flow estimate.
▤ What to do next
Compare after-tax cash flow as well as gross and net yield, test realistic void periods and confirm the mortgage-interest credit against your ownership structure and tax position.
UK-specific contextFigures use GBP and current published rates and thresholds.
Reviewed for clarityUpdated 3 August 2026.
ImportantFor planning and educational use — not tax, legal or financial advice.
Your privacy mattersInputs stay in your browser.
Frequently asked questions
What's a 'good' rental yield?+
It varies by area and property type, but many UK landlords look for net yields in the 5–8% range, though this depends heavily on local capital growth prospects too.
Does yield include mortgage payments?+
The calculator includes annual mortgage interest in profit and cash-flow outputs. It does not treat capital repayment as a property expense because that builds equity.
Why does net yield matter more than gross yield?+
Gross yield ignores running costs, which can be substantial (letting agent fees, maintenance, insurance), so net yield gives a more realistic income picture.
Does this account for tax on rental income?+
It estimates tax on rental profit and applies a 20% Section 24 mortgage-interest credit using your entered tax rate. Confirm personal allowances, ownership shares and other income separately.
Official references
Rules and thresholds used by this calculator are labelled for 2026–27 or formula-labelled period. Review the primary guidance before making a filing, borrowing, benefit or investment decision.
Last source review: 3 August 2026. Calculator results are estimates and may exclude circumstances described in the methodology.