Rental Yield Calculator

It depends on the area and strategy. Many buy-to-let investors look for a gross yield around 5 to 8 percent, with higher yields common in parts of the North and lower yields in London and the South East where capital growth does more of the work. Net yield matters more than gross once running costs are included.

Gross yield is annual rent divided by the purchase price. Net yield takes off running costs such as letting fees, maintenance, insurance and service charges, so it reflects what you actually keep before mortgage payments. Net yield is the fairer comparison between properties.

Usually not. Yield measures the property's income against its price, independent of how you finance it, so mortgage interest is left out. Use cashflow or ROI to see the after-finance return. This calculator shows monthly profit before mortgage; add the loan in the stress-test or cashflow tools for the after-finance picture.

Raise the rent to market where the tenancy allows, cut avoidable running costs, reduce voids, or add value (an extra bedroom, or converting to an HMO where permitted). Buying below market at the outset is the most direct lever, since yield is measured against the price you pay.