Reviewed by Mustafa Bilgic
Founder, WebCalculator
Yield maths follows standard landlord methodology. Cost assumptions are illustrative — your own mortgage, fees and void rate will vary. Estimates only, not financial advice.
Yield is the number every landlord watches. Enter the property price, monthly rent and your running costs to see both the gross and net rental yield — and whether a deal stacks up as an income investment.
Price · rent · running costs
Rental yield expresses the rent as a percentage of the property's value, so you can compare investments of different sizes on a like-for-like basis. There are two versions:
| Property price | Monthly rent | Gross yield |
|---|---|---|
| £150,000 | £900 | 7.2% |
| £200,000 | £1,100 | 6.6% |
| £300,000 | £1,400 | 5.6% |
| £450,000 | £1,800 | 4.8% |
A healthy gross yield can shrink fast once you allow for the mortgage, letting fees, insurance, maintenance, ground rent and inevitable void periods. Stress-test the mortgage side with the buy-to-let mortgage calculator, and remember the extra Stamp Duty on purchase — check it with the second home stamp duty calculator.
Gross yield = annual rent ÷ property price × 100. A £200,000 property let for £1,000 a month yields 6%. Net yield subtracts annual running costs from the rent first.
Most landlords aim for a gross yield of 5–8%. Yields are higher in the North and lower in London, where capital growth tends to make up the difference.
Gross yield ignores costs; net yield subtracts the mortgage, insurance, management, maintenance and voids — a far more realistic measure of income kept.
No. Yield measures rental income only. Total return adds any rise in the property's value, which can dwarf the income in high-growth areas — or fall in a downturn.