Calculate the profitability of your property investment with our comprehensive rental yield calculator. Get both gross and net yield calculations instantly.
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Make informed investment decisions with comprehensive rental yield analysis
Rental yield measures annual rental income as a percentage of property value, helping investors assess profitability and compare investment opportunities effectively.
Generally, a rental yield of 5% or higher is considered attractive in the UK property market, though this varies by location and property type.
Use rental yield alongside capital growth potential and location factors to build a balanced property investment portfolio.
Our rental yield calculator simplifies the process of determining property investment returns. The calculation involves dividing annual rental income by the property's purchase price or current market value, then multiplying by 100 for a percentage.
For example, if you purchase a property for £250,000 and it generates £15,000 annually in rent, your gross rental yield would be 6% (£15,000 ÷ £250,000 × 100).
Gross rental yield considers only rental income against property value, providing a basic profitability overview. Net rental yield accounts for ongoing expenses like maintenance, insurance, and management fees, offering a more realistic picture of actual returns.
Smart investors focus on net yield as it reflects true profitability after accounting for all operational costs associated with property ownership and management.
Properties in high-demand urban areas like London may offer lower yields but stronger capital growth potential, while rural properties might provide higher yields with varying appreciation prospects.
Houses in Multiple Occupation (HMOs) often generate higher yields through multiple rental streams, though they require more intensive management compared to single-let properties.