Rental Yield Calculator

Rental yield measures the annual rental income of a property as a percentage of its purchase price. It’s a key metric used by property investors to evaluate potential returns on buy-to-let investments.

The formula is:
(Annual rental income ÷ Property value) × 100 = Gross rental yield (%)
Our Rental Yield Calculator does this automatically and can also factor in annual costs to estimate net yield.

Rental yield gives clarity on the income a property could generate relative to its cost. It helps investors assess cash flow, mortgage affordability, and compare potential returns across locations.

Yields vary by location:

• 3–4%: Average in Prime Central London

• 5–6%: Strong yields in cities like Birmingham, Manchester, and Liverpool

• 6%+: Often achieved in off-plan or regeneration area investments

Yes. The calculator works for properties across the UK, helping investors in London, Birmingham, Manchester, and other cities assess potential rental returns.

It shows both. Gross yield is calculated from rental income and property price, while net yield subtracts estimated annual costs such as management fees, maintenance, and taxes.

No. The results are estimates based on the data entered. Rental income, running costs, and market conditions can change, affecting actual returns. For personalised advice, consult a qualified property professional.

Factors that can improve yield include targeting regeneration zones, choosing off-plan developments, minimising void periods, and managing costs efficiently. Our investment consultants can provide tailored guidance.