Rental Yield Calculator
Calculate gross and net rental yield on a property from its price, annual rent and running costs to compare buy-to-let investments.
Last reviewed by the Radiatus Cloud team
Calculate the gross and net rental yield of a buy-to-let property.
Planning cloud or compliance spend?
Our team optimises cloud cost & risk for finance leaders.
Calculate rental yield
Rental yield expresses the annual rent a property earns as a percentage of its value, letting you compare the income potential of different buy-to-let investments. Gross rental yield divides the annual rent by the property price, while net rental yield subtracts annual running costs such as maintenance, insurance, management fees and taxes before dividing, giving a more realistic picture of the actual return. This calculator shows both figures along with the monthly rent and net annual income.
Net yield is the more meaningful number because it reflects the money you actually keep after the costs of owning and letting the property.
Comparing property investments
Yield is a quick way to screen rental properties and compare them against each other and against other investments. A high gross yield can look attractive but may hide heavy running costs, which is why the net figure matters. Yields also vary by location: cheaper areas often show higher yields, while expensive cities may offer lower yields but stronger capital growth.
Rental yield measures income only and does not include any increase in the property's value over time, which is a separate component of total return. It also ignores mortgage costs, so a leveraged return will differ. All calculation happens locally in your browser.
Related tools
- Compound Interest Calculator — Project how savings or investments grow with compound interest and regular contributions, in both nominal and inflation-adjusted terms.
- Mortgage Calculator — Calculate mortgage payments from price, deposit, rate and term, with total interest, amortisation and the costs beyond principal and interest.
- EMI Calculator — Calculate equated monthly instalments for a loan, with total interest, amortisation breakdown and the effect of prepayment.
- Paycheck / Salary Calculator — Work out net pay per paycheck after tax and deductions, including the extra-paycheck months.
Frequently Asked Questions
What is the difference between gross and net yield?
Gross yield divides annual rent by the property price, while net yield first subtracts running costs, giving a more realistic return.
What costs should I include in net yield?
Include maintenance, insurance, management fees, letting fees, service charges and property taxes, but financing costs are usually treated separately.
What is a good rental yield?
It depends on the market, but many investors look for net yields above four to five percent. Compare against similar properties in the same area.
Does yield include property value growth?
No. Yield measures rental income only. Any rise in the property\'s value is a separate part of your total return.
Does it account for my mortgage?
No. These yields are based on the full property price. A mortgage changes your cash-on-cash return, which is a different calculation.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter the property price, annual rent and annual costs.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
Related Tools
Compound Interest Calculator
FinanceProject how savings or investments grow with compound interest and regular contributions, in both nominal and inflation-adjusted terms.
Mortgage Calculator
FinanceCalculate mortgage payments from price, deposit, rate and term, with total interest, amortisation and the costs beyond principal and interest.
EMI Calculator
FinanceCalculate equated monthly instalments for a loan, with total interest, amortisation breakdown and the effect of prepayment.