Rental Yield Calculator
Calculate gross and net rental yields for buy-to-let properties.
Include insurance, maintenance, management fees, etc.
5.76%
Annual rent ÷ purchase price
4.8%
(Annual rent − costs) ÷ purchase price
Gross yield is the annual rent as a percentage of the property price. Net yield accounts for operating costs but excludes mortgage payments and tax.
Understanding Rental Yield
Rental yield is the key metric for comparing buy-to-let investments. It shows your annual return as a percentage, letting you compare properties at different price points.
Gross Yield
Quick comparison metric: annual rent ÷ purchase price × 100
Net Yield
True return after costs: (rent - expenses) ÷ price × 100
UK Rental Yields by Region (2026)
| Region | Gross Yield |
|---|---|
| North East | 7-9% |
| North West | 6-8% |
| Midlands | 5-7% |
| South East | 4-5% |
| London | 3-4% |
Higher yields in the North; better capital growth in the South.
Frequently Asked Questions
How do I calculate rental yield?▼
Gross rental yield = (Annual rent ÷ Property price) × 100. For example, a £200,000 property with £1,000/month rent = (£12,000 ÷ £200,000) × 100 = 6% gross yield. Net yield deducts expenses like maintenance, insurance, and management fees before dividing.
What is a good rental yield in the UK?▼
A gross yield of 5-8% is considered good for UK buy-to-let. Northern cities (Liverpool, Manchester, Nottingham) typically offer 6-8%, while London averages 3-5%. However, lower-yield areas often have better capital growth potential. Aim for at least 4% net yield after all expenses.
What is the difference between gross and net rental yield?▼
Gross yield is calculated using the full annual rent against the purchase price - it's a quick comparison metric. Net yield deducts all costs (mortgage interest, maintenance, insurance, void periods, management fees) giving you the true return on your investment.
Which UK cities have the highest rental yields?▼
As of 2026, the highest rental yields are typically found in: Sunderland (7-9%), Liverpool (6-8%), Nottingham (6-8%), Manchester (5-7%), and Bradford (6-8%). These yields are significantly higher than London (3-4%) but may come with different capital growth prospects.