Evaluate your property investment potential
This simple-to-use rental yield calculator allows you to calculate the gross and net rental yield for a property, so that you can evaluate the property potential.
0.00%
Poor yield
0.00%
After annual costs
Use our stamp duty calculator for more details
Maintenance, insurance, management fees, etc.
+£0.00
Positive monthly cash flow
This table illustrates different monthly rents and the gross rental yield.
| Rent | Profit | Yield |
|---|
Highlighted row shows your current rent
Rental yield is the return you will make from renting out a property in percentage terms. Landlords and investors use rental yield to evaluate the value of property investments.
Gross Rental Yield
Annual rent ÷ (Property price + Stamp duty) × 100
£12,000 ÷ £320,000 = 0.00%
Net Rental Yield
(Annual rent - Annual costs) ÷ (Property price + Stamp duty) × 100
(£12,000 - £1,000) ÷ £320,000 = 0.00%
As a rule of thumb, 5% - 8% is considered a reasonable level of rental yield.
However, this will depend on the location and area of the property, because different parts of the country may deliver better (or worse) returns.
This is a poor rental yield that may not justify the investment.
Net rental yield takes into account the annual costs such as maintenance, insurance, management fees, and other expenses. This gives you a more realistic picture of your actual return on investment.