Buy-to-Let Yield Calculator
Calculate the gross and net rental yield on a buy-to-let property to assess the return on your investment. Net yield accounts for annual costs such as management fees, insurance, and maintenance.
How it's calculated
Gross yield = Annual rent ÷ Property value × 100Net yield = (Annual rent − Annual costs) ÷ Property value × 100
Frequently Asked Questions
- What is a good rental yield in the UK?
- A gross rental yield of 5–8% is generally considered good for a buy-to-let investment in the UK. Yields vary significantly by region — northern cities like Manchester and Liverpool typically see higher yields than London.
- What costs should I include in net yield?
- Common costs include letting agent fees (8–15% of rent), landlord insurance, maintenance and repairs, mortgage interest, ground rent, service charges, and void periods (typically 3–4 weeks per year).
- Do I pay tax on rental income?
- Yes. Rental profits (income minus allowable expenses) are subject to income tax. The mortgage interest relief is restricted to the basic rate (20%) for residential landlords. Landlords should also consider potential CGT on disposal.