Rental Yield Calculator 2025
Calculate both gross and net rental yields accurately with our professional calculator. Essential for buy-to-let investors to evaluate property investment potential and compare different opportunities. Updated for October 2025 UK market conditions.
Calculate Your Rental Yield
Your Rental Yield Calculation
Gross Yield
0%
Net Yield
0%
Financial Breakdown
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Important Notes
- Gross yield = (Annual rental income ÷ Property value) × 100
- Net yield = ((Annual rental income - Annual costs) ÷ Total investment) × 100
- Total investment includes purchase costs like stamp duty and legal fees
- Consider void periods when estimating rental income
Frequently Asked Questions
Common questions about rental yield calculations
What is a good rental yield?
A good rental yield typically starts at 5-6% for residential properties. However, this varies by location and property type. City centers often offer lower yields but better capital growth potential, while regional areas might offer higher yields but slower appreciation. Consider both yield and potential capital growth when evaluating investments.
Why is net yield important?
Net yield gives a more accurate picture of your actual return by accounting for all costs associated with owning and managing the property. While gross yield is useful for quick comparisons, net yield helps you understand the true profitability of your investment and makes it easier to compare different investment types.
How can I improve my rental yield?
You can improve rental yield by: increasing rental income through property improvements or better marketing, reducing costs through efficient management and maintenance, refinancing to get better mortgage rates, considering areas with higher rental demand, and investing in properties that need minor improvements to increase value.
Should I include mortgage payments in yield calculations?
For net yield calculations, including mortgage payments gives you the most accurate picture of your actual return. However, some investors prefer to calculate yield without mortgage costs to compare properties regardless of financing. Consider calculating both to make informed decisions based on your investment strategy.
How do void periods affect rental yield?
Void periods reduce your annual rental income while costs continue. A good rule of thumb is to account for 1-2 months of void periods per year in your calculations. This creates a more conservative and realistic yield estimate. The impact of void periods varies by location and property type.