Rental Yield Calculator (2026)
Work out gross yield, net yield and cash-on-cash return on a buy-to-let property in seconds — no sign-up, nothing saved.
Gross yield
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Net yield
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Cash-on-cash return
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Monthly cash flow
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How rental yield is calculated
Gross yield is the simplest version: annual rent divided by purchase price, times 100. A property that costs £250,000 and rents for £1,200/month brings in £14,400/year, for a gross yield of 5.76%. It's the number most portals and agents quote, and it's useful for a quick comparison between properties — but it ignores every cost of actually running the property.
Net yield is more honest. It subtracts letting agent fees, an allowance for void periods, and other annual costs (service charge, ground rent, insurance) before dividing by purchase price. On the same £250,000 property, with a 10% letting fee, 2 void weeks a year and £600 in annual service charge and insurance, net annual income comes to roughly £11,862 — a net yield of 4.74%. That gap between gross and net is exactly why two properties quoting the same "yield" on Rightmove can perform very differently once they're actually let.
Cash-on-cash return matters most if you're buying with a mortgage rather than in cash, because it measures return against the money you actually put in — the deposit — not the full purchase price. Using an interest-only mortgage at 75% loan-to-value and 5.5% interest on the same example, annual mortgage interest is £10,313, leaving £1,549 net cash flow against a £62,500 deposit: a 2.48% cash-on-cash return. This is usually the number that decides whether a "good yield" property is actually a good investment once leverage is factored in.
Worked example
A two-bed flat in Manchester, purchase price £180,000, rents at £950/month. Gross yield: (£950 × 12) / £180,000 = 6.33%. With a 12% management fee, 3 void weeks and £400/year service charge, net annual income comes to roughly £9,053, for a net yield of 5.03%. Buying with a 25% deposit (£45,000) at 5.5% interest-only adds £7,425/year in mortgage interest, leaving £1,628 net cash flow — a 3.62% cash-on-cash return. Try these figures in the calculator above to see the full breakdown, then adjust for your own numbers.
Frequently asked questions
What is a good rental yield in the UK?
Most investors treat 5–8% gross yield as solid, with 7%+ considered strong. City-centre flats and southern England tend to sit lower (3–5%) due to high purchase prices; northern cities and HMOs often reach 7–10%+.
What's the difference between gross yield and net yield?
Gross yield ignores running costs. Net yield subtracts letting agent fees, service charge, ground rent, insurance and voids first, so it's a more realistic picture of actual return.
Is this the same as a buy-to-let yield calculator?
Yes — rental yield and buy-to-let yield are the same calculation. This tool also works out cash-on-cash return, which matters more than yield alone once a mortgage is involved.
Does this account for a mortgage?
Yes, optionally — toggle "Using a mortgage?" and enter your deposit and interest rate to see monthly cash flow and cash-on-cash return.
Is this free to use?
Yes — no sign-up. It runs in your browser and nothing you type is sent anywhere.
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