Rental Yield Calculator
Work out how hard a buy-to-let is working for you: gross and net yield, monthly cash flow and the return on the cash you put in.
The property
Before Income Tax. Landlords can only claim 20% tax credit on mortgage interest, so higher-rate taxpayers often keep less.
Yield formulas
Gross yield = yearly rent ÷ property price × 100
Net yield = (yearly rent − costs) ÷ property price × 100
Costs to include
- Void periods: weeks with no tenant, often 2 to 4 a year.
- Letting agent fees: typically 10 to 15% of rent for full management.
- Insurance, repairs and maintenance: many landlords budget 1% of the property value a year.
- Safety certificates: gas safety, EICR and EPC.
- Service charge and ground rent for leasehold flats.
Buying another property? Check the second-home rate in the stamp duty calculator.
Figures are before tax and do not include capital growth. Speak to a tax adviser about your own situation.
Sources
Figures are checked against these official sources. Last reviewed 7 November 2026.
Common questions
What is a good rental yield in the UK?
Many landlords aim for a gross yield of 5 to 8%. Yields tend to be higher in the North of England and Scotland and lower in London and the South East, where prices are higher.
What is the difference between gross and net yield?
Gross yield is yearly rent divided by the property price. Net yield takes off running costs such as agent fees, insurance, repairs and empty periods, so it shows what the property really earns.
How do I calculate rental yield?
Gross yield = (monthly rent × 12) ÷ price × 100. For example £1,000 a month on a £200,000 property is 6%.
Is rental income taxed?
Yes. Rental profit is added to your other income and taxed at your Income Tax rate. Mortgage interest is not deductible; instead you get a 20% tax credit on it.
Do I pay extra stamp duty on a buy-to-let?
Yes. In England and Northern Ireland there is a 5% surcharge on top of each stamp duty band when you buy an additional property.