Rental Yield Calculator
Use our Rental Yield Calculator to quickly estimate both gross and net rental yields, helping you evaluate your investment return.
Calculate Your Rental Yield Instantly.Quickly estimate your property’s rental return — just enter the purchase price and annual rental income.
How to Calculate?
1.Enter the property purchase price
2.Enter the annual rental income
3. View your rental yield (%) instantly
What is Rental Yield?
Rental yield represents the percentage of annual rental income relative to the property’s total purchase price. It helps
investors evaluate the profitability of a property.
Formula:
Rental Yield (%) = (Annual Rental Income ÷ Property Price) × 100
Example:
Property price £500,000, annual rent £25,000
Rental Yield = (25,000 ÷ 500,000) × 100 = 5%
Input Fields
* Property Price: Total purchase price (in GBP)
* Annual Rental Income: Expected annual rent from the property
Click “Calculate” to view your result.
Why is Rental Yield Important?
Rental yield helps investors compare return potential across properties or locations, guiding smarter investment decisions.
FAQs
Q1: What is rental yield?
Rental yield:
Rental yield refers to the percentage ratio between the annual rental income derived from a property investment and the total purchase price of that property. It assists investors in evaluating the profitability of a property.
Q2: What’s the difference between Gross and Net Rental Yield?
Difference:
Our yield calculator will show you two percentages
— Gross Rental Yield and Net Rental Yield.
- Gross Rental Yield: The percentage return before deducting any costs or expenses.
- Net Rental Yield: The percentage return after accounting for costs such as maintenance, service charges, and other property-related expenses.
Q3: What is a good rental yield?
A “good” rental yield depends on the type of property you’re purchasing and your individual financial goals.
If you’re considering multiple properties, comparing their yields can help narrow down your shortlist and make a more informed investment decision.
Besides rental yield, what other costs do I need to consider? Several costs need to be considered when renting out property, including:
· Stamp Duty (for properties not yet purchased)
· Maintenance Fees
· Agency Fees
· Ground Rent (for rental properties only)
