FREE BUY TO LET TOOL
Buy to Let Rental Yield Calculator
Work out the rental yield on a property you own or are considering — the gross yield most people quote, and an illustrative net yield once running costs and a mortgage payment are taken into account. Enter the property price, the rent you expect, and any costs you want to include.
Illustrative only — not advice
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WORKED EXAMPLE
A £200,000 buy to let
Let for £1,000 a month, with £3,600 a year of running costs and a £650-a-month mortgage payment:
Illustrative only, not advice or a prediction.
Try your own figuresWork out your rental yield
Enter the property value and the rent. Running costs and a mortgage payment are optional. The calculator updates as you type.
The results are illustrative only and are not advice. The calculator works on the figures you enter and states its assumptions below — it doesn’t model tax, capital growth or future changes in costs.
This calculator needs JavaScript to show results. Gross yield = annual rent ÷ property value × 100. Illustrative net yield = (annual rent − running costs − annual mortgage payments) ÷ property value × 100. Results are always illustrative only and are not advice — see the assumptions listed below the calculator.
What the mortgage does to the yield
With these figures, the costs exceed the rent — a rental income top-up or a review of the numbers may be needed.
How the figures are worked out
Illustrative only — not advice, a valuation or a recommendation. Yields are worked out on the full property value. See the assumptions below the calculator.
This calculator provides illustrative figures only. It is not advice, a valuation or a recommendation. Rental yields vary with voids, maintenance, tax and market conditions, and past rental performance doesn’t guarantee future results. Buy to let borrowing is subject to lender criteria, and your home or the rental property may be repossessed if you do not keep up repayments on your mortgage. Please note that some forms of BTL mortgages are not regulated by the FCA.
Assumptions behind the calculator
The calculator is a ready reckoner. Results rely on these assumptions:
- Yields are worked out on the full property price or value you enter, not on the deposit or cash you invested (that’s ‘yield on capital’, which an adviser or accountant can talk you through).
- Gross yield = annual rent ÷ property value × 100. Illustrative net yield = (annual rent − running costs − annual mortgage payments) ÷ property value × 100. Monthly figures are multiplied by 12.
- Running costs and the mortgage payment are the figures you enter. The calculator makes no interest rate assumptions and doesn’t model rate changes.
- No tax is modelled. Tax on rental profits depends on your circumstances and how the property is held, so speak to an accountant for the tax picture and a mortgage adviser for the borrowing side.
- No capital growth, void periods (other than any allowance you include in running costs) or future changes in rent or costs are modelled.
- Where costs exceed the rent, the calculator shows a negative net yield. Yields are shown to one decimal place.
- Results are for illustration only; they are not advice, a valuation or a recommendation.
Page last reviewed: November 2026. This tool is for illustration only and is not advice.
Gross yield
Gross yield = (annual rent ÷ property value) × 100
A property letting for £12,000 a year (£1,000 a month) that’s worth £200,000 has a gross yield of 6%. It’s quick to compare, but it ignores every cost — which is why two properties with identical gross yields can be very different investments.
Net yield
Net yield = (annual rent − running costs − mortgage payments) ÷ property value × 100
The net figure is closer to reality, but it depends on which costs you include — which is why it’s always an illustration rather than a single truth. The calculator above shows both, using whatever costs you enter.
A note on the maths
This calculator computes yield on the full property value. If you buy with a mortgage, your return on the cash you actually invested (the deposit plus costs) will be higher — that’s ‘yield on capital’, and an adviser or accountant can talk you through it.
RUNNING COSTS
What counts as running costs?
Net yield is only as honest as the costs you include. The usual suspects:
- Letting and management fees — tenant-find only, or full management
- Maintenance and repairs — a common rule of thumb is to budget around 1% of the property value a year, though older properties often need more
- Insurance — landlord buildings insurance, and contents if furnished
- Ground rent and service charge — for leasehold properties
- Void periods — the rent you don’t receive between tenancies; budgeting a week or two a year is a common allowance
- Compliance costs — gas safety checks, EPC renewals, electrical certificates, licensing where required
- Agent and legal costs — tenancy renewals, possession proceedings if things go wrong
And the biggest one of all, if there’s a mortgage: the mortgage payment. Enter it in the calculator and the results show the yield before and after the lending cost — often the difference between a paper yield and a real one.
A property worth £200,000 letting for £1,000 a month (£12,000 a year) has a gross yield of 6.0%. With £3,600 a year of running costs and a £650-a-month mortgage payment (£7,800 a year), the illustrative net yield would be (£12,000 − £3,600 − £7,800) ÷ £200,000 × 100 = 0.3% — showing how much the lending and running costs change the picture. These are round-figure illustrations of the maths, not advice or a prediction — the calculator works on your own numbers.
There’s no single ‘good’ yield — it depends on the area, the property and your plans. Broad context:
- Yields tend to be higher where property prices are lower relative to rents, and lower in high-value areas.
- A common way landlords think about it: gross yields in the mid-single digits are typical across much of the UK, with some regional variation well above and below that.
- A higher gross yield often comes with trade-offs — older properties needing more maintenance, areas with more void risk, or stronger tenant turnover. Comparing net yields on realistic costs is more revealing than chasing the biggest gross number.
- Yield is only half the story: capital growth, the property’s condition and your long-term plans matter just as much, and tax treatment depends on your circumstances.
The calculator’s net figure, on your own realistic costs, is a more honest comparison than any national benchmark.
OWNERSHIP STRUCTURE
Personal ownership or a limited company?
One question the calculator deliberately doesn’t answer is whether the property sits in your own name or inside a limited company — because the yield itself doesn’t change with the wrapper. The property’s value and the rent are what they are. What changes is what happens around the yield:
- Tax treatment. For individuals, mortgage interest relief on rental profits is restricted to the basic rate; for companies, mortgage interest is typically treated as a deductible expense but profits are subject to corporation tax, and taking money out of the company has its own tax consequences. The right structure depends on your overall position — this is firmly accountant territory.
- Lending. Limited company buy to let is a distinct lending market: some lenders specialise in it, criteria and product ranges differ from personal ownership, and most lenders require personal guarantees from directors. Rates are not directly comparable with personal buy to let products.
- Costs and administration. Companies bring incorporation, accounts, filings and potentially mortgage arrangement differences — real costs that belong in your net yield thinking even though the calculator doesn’t model them.
A common pattern: landlords who bought personally years ago sometimes hold new purchases through a company, and portfolio landlords often use a company structure for new acquisitions. There is no universally right answer, and the tax side decides far more than the yield does. Talk to your accountant about the tax position first; then we can compare the lending options for whichever structure you choose. Please note that some forms of BTL mortgages are not regulated by the FCA.
Weighing up the structure?
Our guide to buying in your personal name or a limited company explains how the lending side differs.
THE LENDING SIDE
Where buy to let lending fits
If you’re weighing up a purchase, a remortgage, or raising capital on a property you already let, the mortgage payment is the number that moves the net yield most — which is why it belongs in the calculation.
Please note that some forms of BTL mortgages are not regulated by the FCA. Buy to let lending also works differently to residential borrowing: lenders assess affordability against the rental income (often requiring the rent to cover a percentage of the mortgage payment — see our guide to rental stress tests and ICR), rates and criteria vary widely, and the structure matters — personal ownership, a limited company, or a portfolio loan all change the picture.
We offer buy to let mortgage advice and advise on let to buy mortgages across England and Wales, including limited company structures. If you’d like the lending side of the yield equation checked against the market, that’s a conversation we can have.
RENTAL YIELD FAQs
Questions About Rental Yield
Comparing properties or reviewing a let you already own? Yield is a useful starting point, but tax, lending and your plans matter just as much.
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