Rental Yield Calculator UK
Calculate gross and net rental yield for any UK property. Free calculator for buy-to-let landlords — no signup required.
Get free landlord tools & guides
Join UK landlords who save thousands by self-managing. No spam.
How to Calculate Rental Yield
Rental yield measures the annual return you get from a property as a percentage of its purchase price. It's the most important metric for comparing buy-to-let investments.
Gross Yield Formula
Gross Yield = (Annual Rent / Purchase Price) x 100
For example, a property purchased for £250,000 generating £1,200/month rent: (£14,400 / £250,000) x 100 = 5.76% gross yield.
Net Yield Formula
Net Yield = ((Annual Rent - Annual Expenses) / Purchase Price) x 100
Using the same property with £3,000 annual expenses: ((£14,400 - £3,000) / £250,000) x 100 = 4.56% net yield.
Average Rental Yields by UK Region (2026)
| Region | Average Gross Yield |
|---|---|
| North East | 7.1% |
| North West | 6.5% |
| Yorkshire | 6.2% |
| East Midlands | 5.4% |
| West Midlands | 5.6% |
| South West | 4.8% |
| South East | 4.2% |
| London | 3.8% |
| Scotland | 6.0% |
| Wales | 5.5% |
Tips for Improving Rental Yield
- Reduce void periods — price competitively and maintain the property well
- Self-manage — save 8-15% in letting agent fees
- Claim all tax deductions — reduce your taxable profit
- Add value — small improvements can justify higher rents
- Choose the right area — research tenant demand before buying
Frequently Asked Questions
What is a good rental yield in the UK?
A gross yield of 5-8% is generally considered good in the UK. Net yield (after expenses) of 3-5% is typical. Yields vary significantly by area — northern cities often yield 6-8% while London averages 3-4%.
What is the difference between gross and net yield?
Gross yield uses the full annual rent divided by purchase price. Net yield deducts annual expenses (insurance, maintenance, void periods, management fees) before dividing by the price. Net yield gives a more realistic picture of returns.
What expenses should I include in the calculation?
Include landlord insurance, maintenance/repairs, ground rent and service charges, letting agent fees (if used), void period costs, safety certificates, and any other recurring costs. Do not include mortgage payments — yield measures the property return, not your cash flow.
Should I calculate yield on purchase price or current value?
For assessing a new purchase, use the purchase price plus buying costs (stamp duty, legal fees). For reviewing an existing investment, you can use current market value to assess whether your money is working hard enough.