Compare gross yield (the headline number) with net yield (after voids, management, and running costs).
Results are estimates for informational purposes only. Not financial advice.
Rental yield is the annual rental income from a property expressed as a percentage of its purchase price (or current value). Gross yield uses the rent figure alone; net yield deducts all running costs — letting fees, maintenance, insurance, void periods, mortgage interest, and tax. Net yield is the only number that tells you what the investment actually returns.
Enter the purchase price, expected monthly rent, and your annual running costs. The calculator returns gross and net yield. As a rough rule, gross yields below 5% rarely make sense in high-interest-rate environments unless you're banking on capital growth; 7%+ gross yields generally cover financing costs with cash-flow to spare. City-centre flats often score 4–6%, regional houses-of-multiple-occupancy 8–12%.
Letting agent fees (8–15% of rent), maintenance (allow 1–2% of property value per year), insurance, ground rent, service charges, and 1–2 months of voids per year can eat 30–50% of gross income. A 'great 8% gross yield' often nets out to 4% — barely above a savings account. Always model net yield with realistic costs before buying.
Results are estimates for informational purposes only.