This rental yield calculator works out the gross and net yield on a buy-to-let or investment property. Enter monthly or weekly rent, the price and purchase costs, and your running costs to see the true return before mortgage and tax.
Rental yield formulas
Gross yield = yearly rent ÷ property price × 100
Net yield = (yearly rent − vacancy − management fees − other costs) ÷ (price + purchase costs) × 100
Gross yield is quick for comparing properties; net yield is closer to what you actually earn because it counts empty periods, letting fees, repairs, insurance and service charges, and the cost of buying.
Worked example
A £250,000 flat lets for £1,250 a month, £15,000 a year, a gross yield of 6%. Allowing 4% vacancy, a 10% management fee and £1,600 of other costs, net income is about £11,360. Including £7,500 of purchase costs, the net yield is about 4.41%.
What is a good rental yield?
Yields vary by location: cheaper areas often have higher yields but slower price growth, while expensive cities tend to have lower yields. Compare yields with your mortgage rate and what you could earn elsewhere, and remember that yield is only part of the return alongside any rise in the property’s value.
Frequently asked questions
What is the difference between gross and net yield?
Gross yield uses rent before any costs. Net yield subtracts vacancy, fees and running costs and includes purchase costs, so it is always lower.
Does rental yield include the mortgage?
No. Yield measures the property’s income against its cost. To include borrowing, look at cash flow and cash-on-cash return.
How do I use weekly rent?
Choose “Week” as the rent period; the calculator multiplies by 52, which is common in Australia.
What costs should I include?
Letting and management fees, repairs and maintenance, landlord insurance, service charges or strata fees, ground rent, council rates where the landlord pays them, and safety certificates.
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Last reviewed: October 2026. For information only; not financial, tax or legal advice.