Rental yield calculator
Rental yield calculator
Enter what you would pay for the property and what it would let for, and we will show the gross and net yield along with the income you would actually keep. Running costs default to 15% of rent — service charge, insurance, maintenance and voids — and can be overridden.
Gross yield
4.40%
Net yield
3.74%
- Annual rent
- £33,000
- Annual running costs
- − £4,950
- Net income, per year
- £28,050
- Net income, per month
- £2,338
Indicative only. This is not investment advice, and it excludes mortgage interest and tax.
Indicative only. This is not financial advice, a mortgage offer or a tax computation. Confirm the figures with a qualified broker, solicitor or tax adviser before you commit.
Questions we get asked
- What is a good rental yield in London?
- Gross yields in prime central London typically sit between 3% and 4%, outer London between 4.5% and 6%. Central stock trades on capital growth; outer London on income. A net yield above 4% in London is doing well.
- What is the difference between gross and net yield?
- Gross yield is annual rent divided by the purchase price. Net yield deducts the running costs — service charge, ground rent, insurance, maintenance, management fees and void periods — before dividing. Net is the number that matters.
- What costs should I include?
- Service charge and ground rent for a flat, buildings insurance, an allowance for maintenance and voids, letting or management fees, and any licensing. Mortgage interest is excluded from yield: it belongs in a cash-flow calculation.
- Does yield include stamp duty?
- Not in the standard formula. If you want a truer picture, add stamp duty and purchase costs to the price you enter — our stamp duty calculator gives you that figure.